Business Places

In this IMG activity, you define your business places. The use of business places is mandatory.

Activities

Create a business place for each tax deduction account number (TAN) that your company has. In the
address data (which is printed on the vendor withholding tax certificates) maintain the tax office's
address as follows:

NAME (lines 1 and 2) Enter the name of the tax office.

NAME (lines 3 and 4) In these fields, enter the TDS

range and circle respectively for
annual returns.

Search term 1 Enter your TAN at this office.

Street 2, Street 3, and Enter the business place's postal

Street/House number address.

District

Postal code/City Enter your PIN code and city.

PATH : IMG > FINANCIAL ACCOUNTING > FINANCIAL ACCOUNTING GLOBAL SETTINGS >
WITHHOLDING TAX > EXTENDED WITHHOLDING TAX > BASIC SETTINGS > INDIA > DEFINE BUSINESS
PLACES.
SECTION CODE

Use

In this Customizing activity, you define the section codes that are covered by your enterprise

In India, section codes classify income tax and withholding tax payments depending on the location of
income tax, and identify under which tax account deduction number (TAN) the item was posted.
Withholding taxes (tax deducted at source - TDS) are payable to the Income Tax Department ( local tax
office) in India.

Activities

In India, create one section code for a local income tax office. For each section code, enter the TAN, the
name of the section code, and the local tax office.

Example for India

A company has a site in Bangalore, where its headquarters and a factory are located, and another factory
in Mumbai:

 The Bangalore site has a TAN assigned by the Income Tax Officer of the Bangalore jurisdiction of
TDS-1, Infantry Road, and a business place of M.G Road Bangalore

 The Mumbai factory has a TAN assigned by the Income Tax Officer of the Mumbai jurisdiction of
JCIT, Central Range 10, and a business place of Mumbai South

PATH: IMG ACTIVITY > FINANCIAL ACCOUNTING > FINANCIAL ACCOUNTING GLOBAL
SETTINGS > WITHHOLDING TAX > EXTENDED WITHHOLDING TAX > BASIC SETTINGS >
INDIA > DEFINE SECTION CODES.