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  • Withhoding Tax PDF

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    Kiran Chenna
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    As per a new amendment, the rates of TDS for non-salaried specified payments made to residents and rates of TCS for specified receipts have been reduced by 25%. This reduced rate applies to payments such as contracts, professional fees, interest, rent, dividends, commissions, and brokerage. The document then provides steps for defining a formula to calculate the withholding tax in SAP to apply this new reduced 25% rate.

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    As per a new amendment, the rates of TDS for non-salaried specified payments made to residents and rates of TCS for specified receipts have been reduced by 25%. This reduced rate applies to payments such as contracts, professional fees, interest, rent, dividends, commissions, and brokerage. The document then provides steps for defining a formula to calculate the withholding tax in SAP to apply this new reduced 25% rate.

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    30 views10 pages

    Withhoding Tax PDF

    Uploaded by

    Kiran Chenna
    As per a new amendment, the rates of TDS for non-salaried specified payments made to residents and rates of TCS for specified receipts have been reduced by 25%. This reduced rate applies to payments such as contracts, professional fees, interest, rent, dividends, commissions, and brokerage. The document then provides steps for defining a formula to calculate the withholding tax in SAP to apply this new reduced 25% rate.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    Hello Folks,

    As per new amendment , the rates of TDS for Non salaried specified payments made to residents and
    rates of TCS for specified receipts shall be reduced by 25%.

    Payment to contract, Professional Fees , Interest, rent, dividend, commission, Brokerage, etc. shall be
    eligible for this reduced rate of TDS.

    Below I am providing SAP solution for the same.

    Executive define Formula for Calculating Withholding Tax.

    Path:- IMG – Financial Accounting (New) – Financial Accounting Global Setting (New) – Withholding
    Tax – Extended Withholding Tax – Calculation – Withholding Tax Code
    Select your Tax Code
    Remove Tax rate and tick on with holding tax form.
    Then go to 2nd step.

    Path:- IMG – Financial Accounting (New) – Financial Accounting Global Setting (New) – Withholding
    Tax – Extended Withholding Tax – Calculation – Withholding Tax Code – Define formula for
    Calculating Withholding Tax
    New Entries

    Here we define two validity period for same tax code.


    Then tick on formula for calculation.
    Then go back go to following screen.

    Then new entries.


    Then tick on formula for calculation.

    New entry.
    Then go to fb60
    Please check in above screen tds amount 8 rs. Instead of 10rs.

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