Tax Due Dates 

Use

When you enter a vendor invoice, the SAP system automatically determines what date you have to remit the withholding tax to the tax office and records it in the tax line item.

Features

There are several factors that influence the tax due date, all of which you can customize:

·         Which section of the Income Tax Act the tax is from (represented in the SAP system by the official withholding tax key)

·         Whether the vendor is classified as a company or not (in the system, the recipient type)

·         In the event of the tax being due on a public holiday, whether the tax office requires you to remit the tax a day earlier or a day later

Activities

Customizing

Set up the due dates in Customizing for Financial Accounting (FI), by choosing Financial Accounting Global Settings ® Withholding Tax ® Extended Withholding Tax ® Basic Settings ® India ® Maintain Tax Due Dates.

In Customizing for FI, under Financial Accounting Global Settings ® Withholding Tax ® Extended Withholding Tax ® Basic Settings ® India ® Assign Factory Calendars to Section Codes, specify whether, in the event of the due date falling on a public holiday, you must remit the tax on the day before or the day after.

Day-to-Day Activities

When you enter a vendor invoice, the system automatically determines the tax due date and enters it in the tax line item.

Periodic Processing

When you come to create a remittance challan to remit the withholding tax, the system uses the tax due date.