Recipient Type 

Definition

A system object that you use to classify payment recipients as legal persons or natural persons, for the purposes of withholding tax reporting.

Use

Customizing

Define the recipient types in Customizing for Financial Accounting (FI), by choosing Financial Accounting Global Settings ® Withholding Tax ® Extended Withholding Tax ® Basic Settings ® Check Recipient Types.

For each withholding tax type, create two entries as follows:

Recipient Type	Text
CO	Companies
OT	Others

Country Version India comes with sample settings for the sample withholding tax types provided.

Master Data

Enter the recipient type in each vendor master and each customer master.

Reporting

The TDS returns separate the information about taxes withheld on legal persons and on natural persons.