CIN FI FAQS

CIN FI

• What is the main difference between classic TDS and Extended Withholding tax (EWT)?

Classic TDS and EWT TDS refer to the two methods of handling Tax Deducted at Source transactions (referred to as “Withholding tax” in SAP terminology). You may use either of these to handle your TDS related transactions. While EWT allows you to create the tax line both at the time of invoice receipt and payments, classic TDS allows you to create the tax line only at the time of payment. In case of invoices, the tax line is generated using another transaction (J1INC).

• Can I have TDS on invoices as well as payments?

Yes, you can have TDS on both invoices and payments. However, you need to be using the EWT functionality to recognize TDS at the time of invoice receipt. 

• How do I determine the TDS payment due date?

You determine the payment due date in CIN customizing.

In case you use the EWT functionality, this can be done by customizing the following link: J1IT à Tax Deducted at Source à Extended Withholding Tax à Determination of Tax Due Dates à Maintain Tax Due Dates for Tax Types

In case of the classic functionality, you may customize the following link: J1IT à Tax Deducted at Source à Payment Due Date Maintenance

You maintain the details of payment due dates for the TDS section and Recipient type. You may enter the number of days from the date of transaction for the section if it is meant to be maintained that way. In case the payment due date falls on the 7^th of the next month, you may enter ‘777’.

• Can I have multiple TAN nos and still be able to use Classic TDS?

There are no standard customizing available in Classic TDS, the TAN No. can be entered during challan update   and Annual Return.

• Can I handle works contacts tax requirements using CIN?

No. CIN does not support transactions that fall under the Works Contract Act. 

• Where do Vendor PAN numbers get stored in Classic and EWT?

In classic TDS, vendor PAN numbers are stored in the vendor master à extras à texts

In EWT TDS, they are stored in the table J_1IMOVENDEWT under the field J_1IPANNO in in the vendor master à CIN Details  .

• How do we represent type of deductor in Annual return? (The type could be Advertiser / Contractor)

J1IT  à Classic Tax Deducted at Sourceà TDS Section - Tax Code Relationship, specify the type for taxcode & section.

• Can I Post TDS document into Special posting periods?

Yes

• Can I modify the Certificate layout w/o altering the program?

Yes, you may change the layout of the certificate without modifying the program

• How do I put Business Place information when I am running the Customer interest post program?

The customer interest post transaction is run as a batch session. When you run the batch session, run it in the foreground mode and enter the business place details.

• What are the conditions for reversing the tax at the time of downpayment clearing?

If the Invoice against which the down payment clearing has already been challan updated (remitted the tax to govt) then it’s not possible to  reverse the tax.

• What do I do when tax rates change

Classic: 

• With prospective effect and retrospective effect

Challan update all the old documents with the old tax rate and then, the taxcode rate in the IMG should be changed and all the documents that are processed for challan update will have the new tax rate.

EWT:

• With prospective effect

The taxcode rate in the IMG should be changed and all the documents that are processed for challan update will have the new tax rate.

• With retrospective effect

All documents for which the tax has been deducted as per the old rate has to be modified using the JV (J1INJV) .

• Which are the Number range objects for which number ranges needs to be maintained?

TDS Certificate Printing  - J_1ICERT

Internal number range for challan – J_1ICHLNNO