TCS Configuration Document

Contents
MASTER DATA CONFIGURATION .......................................................................................... 2
Customer Master Configuration ............................................................................................. 2
1. Maintain PAN .............................................................................................................. 2
2. Maintain Aadhaar ........................................................................................................ 3
Company Code Configuration................................................................................................ 4
1. Maintain PAN .............................................................................................................. 4
TAX PROCEDURE CONFIGURATION ..................................................................................... 5
Condition type........................................................................................................................ 5
Transaction Key..................................................................................................................... 6
Tax procedure ....................................................................................................................... 6
Classify .................................................................................................................................. 7
Maintain Threshold ................................................................................................................ 7
TAX ACCOUNT CONFIGURATION .......................................................................................... 8

NOTE:
If your system is in S4 release, then follow the S4 release section
If your system is in EHP release, then follow the EHP release section

EHP and S4 release sections are mentioned only when there is difference in the
configuration step

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MASTER DATA CONFIGURATION
Customer Master Configuration
1. Maintain PAN
Maintain PAN for S4 Release
• Execute BP transaction code and open Business Partner for the Buyer
• Go to Customer: Country Specific Ext tab and maintain the PAN if applicable

Maintain PAN for EHP Release

• Execute Transaction code XD01/XD02 and enter the customer number
• Go to Withholding Tax tab under CIN details section and maintain the PAN if
applicable

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2. Maintain Aadhaar
Maintain Aadhaar for S4 Release
• Execute transaction SM30 and enter View: V_TB039A
• Create Aadhaar ID Type as shown below
• Note: Create exactly same ID TYPE value ‘AADHAR’
ID TYPE : AADHAR
Description: India: Aadhaar Number

• Execute BP transaction code and open Business Partner for the Buyer
• Click on Identification tab and go to Identification Numbers section
• If Aadhaar is available for the customer maintain it as shown below

Maintain Aadhaar for EHP Release

• Execute Transaction Code XD01/XD02 and enter the customer number
• Go to GST Details tab under CIN details section and maintain the Aadhaar Number if
applicable

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Company Code Configuration
1. Maintain PAN
S4 and EHP Release
• Execute Transaction Code OBY6 and open the Company code Addition Data settings
• Maintain the Company Code PAN number in J_1I02

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TAX PROCEDURE CONFIGURATION
S4 and EHP Release
Condition type
• Execute Transaction Code OBYZ and select Condition type
• Create new condition type JTC1 as shown below
Condition type for 206C(1H) materials
JTC1 – IN 206C(1H) Goods
• Assign MWST access sequence to JTC1

• Execute Transaction Code OBYZ and select Condition type

• Create new condition type JTC2 as shown below
Condition type for IN: 206C Others
JTC2 – IN: 206C Others
• Assign MWST access sequence to JTC2

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Transaction Key
• Execute transaction code OBCN and create transaction key JTC as shown below

Tax procedure
• Execute Transaction Code OBQ3 and go to the Tax Procedure that you are using for Country IN
• Enter JTC1 and JTC2 as the tax condition and maintain the steps to derive base amount
inclusive of GST.
• Assign 361 routine against JTC1 condition type

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Classify Condition Type
• Execute transaction SM30 and enter the view J_1IEXCDEFN
• Click on Edit and classify the 2 condition types with your tax procedure as shown below

Maintain Threshold
• Execute transaction code SM30 and enter the view J_1IG_THLDV
• Create an entry for category ‘TCS Threshold’ and Threshold amount as 50 Lac
• The date maintained in the threshold table must be fiscal year-wise. If the valid from and valid to
date is changed in the middle of the year for Threshold category TCS, then the tax will not be
calculated as per the legal requirement.

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TAX ACCOUNT CONFIGURATION
Note: As per the TCS rule for 206c(1H) goods the seller is liable to deposit the collected TCS to
the govt authorities only on receipt of such amount from the buyer

S4 Release tax account configuration

• Create Target Tax code in FTXP
T0 is created and Saved with rate maintained as below

Note: Ignore, if this is already done as part of “TCS_Configuration.pdf” attachment in the

SAP note
2948539 - Corrections to enable Tax Collected at Source in Outgoing Invoices
• Create a new Interim/Immediate tax code for the TCS condition along with GST and this tax
code must be used in the customer invoice.
• Assign the target tax code created in previous step

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• Maintain the rate as shown below

• Maintain rate for JTC1 condition via FTXP with 0.075% rate valid till 31.03.2021 if PAN/Aadhaar
is available. From 01.04.2021 onwards the rate will be 0.1%
• If PAN/Aadhar is not available, then create a new tax code with 1% rate for JTC1 and assign the
target tax code that should also be created with 1 %.

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• Two G/Ls to be used for TCS postings
Note:
The TCS account GL should be Open Item Managed
Tax Category should be “>” Output Tax account
• Interim or Intermediate G/L:

• Actual or Final G/L

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 • Maintain the interim/Intermediate and Final TAX account GL in OB40 transaction code

• When you create customer invoice, the tax amount will be posted to an interim/Intermediate GL
account

Note:
For Materials other than 206C(1H), maintain appropriate rates in JTC2 condition by creating new tax
code.

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