TDS Deduction In SAP

[Guest]

In Sap whether TDS on Job Worker is deducted at time of MIGO or MIRO

Regards

Nevil Kalavadia

[CAGOPALJI AGRAWAL]

Please clarify MIGO and MIRO.

[DINESH AGGARWAL]

Dear Nevil

TDS liability arises at the time of payment or credit to the account of party, whichever is earlier.

In SAP, FICO is updated vide MIRO.  Hence, in my opinion, liability of TDS is arises at the time of MIRO.

Hope this would clarify the issue.

Regards

manojkmodi

[email protected]

 

AI Summary

TDS liability arises on payment or credit, and in SAP the obligation is recognised on MIRO invoice posting. The legal principle is that withholding tax liability arises at the earlier of payment or credit to the payee; in SAP the accounting update occurs on invoice posting via MIRO, so the operative point for recognizing and accounting for TDS in the system is the MIRO posting.