Withholding Tax Certificates for Vendors and Customers 

Use

You must present your vendor or customer with a withholding tax certificate within 60 days of the business transaction.

You do not use the generic programs for printing withholding tax certificates. Instead, Country Version India offers two programs that you can use to print withholding tax certificates, one for vendors and one for customers.

Prerequisites

You can only print the certificates once you have remitted the tax in question and entered the bank challans. Any other tax items will not be included in the certificates.

Features

Certificates

The programs print a separate certificate for each vendor or customer. Each certificate shows all the withholding tax items belonging to that vendor of customer. The items are listed according to their bank challan number, as required by law.

The program numbers the certificates, but only when you print the certificates directly, not in the print preview.

If you have had dealings with the same vendor or customer in more than one tax jurisdiction (tax office), the system prints a separate certificate for each tax office. The system allows you to print out the certificates on different SAPscript forms for every tax office and every section of the Income Tax Act, if required.

Credit Memos, Down Payments

The system deducts credit memos and down payments from the invoices that they belong to, if such information is available.

One-Time Accounts

For one-time vendors or one-time customers, only one business transaction is printed. The address details are taken from the appropriate document for the vendor or customer.

Separate programs are available for reprinting and canceling vendor certificates.

Activities

Customizing

Make the Customizing settings for the programs in Customizing for Financial Accounting (FI), by choosing Financial Accounting Global Settings  ® Withholding Tax  ® Extended Withholding Tax  ® Postings  ® India  ® Vendor Withholding Tax Certificates.

Since you do not need the generic programs for printing withholding tax certificates, ignore the generic Customizing activities.

Deactivate certificate numbering in the withholding tax types.

Master Data

Maintain your section codes' address data, and maintain your customers' and vendors' PANs (see Vendor Master (Country Version India Data) and Customer Master (Country Version India Data)). This data will be printed out on the certificates.

Periodic Processing

You print vendor withholding tax certificates and customer withholding tax certificates once monthly or once annually as required.

If necessary, you can reprint and cancel withholding tax certificates for your vendors (but not for your customers).