Professional Tax - Maharashtra & Form16-Summary of Payslip

Professional Tax - Maharashtra

& Form16-Summary of Payslip

Component Version: SAP ECC 6.0   Release: 604   Level: 0046       Highest Support Pack level:SAPKE60460

Dear Gurus,

This document comprises the steps for configuring the Professional Tax for Maharashtra. Unlike the other states Maharashtra professional tax will be calculated in a specific manner.

The PTax Slab rates for pertaining Maharashtra are as follows.

In the context of the years 2012-2013 & 2013-2014, the Maharashtra PTax calculation for employees with Income above Rs.10, 001/- will be as follows.

Instead of calculating 2500/12=208.333 it should be calculated as follows

200*11=2200(April-2012 to Jan2013 and March2013) (For Eleven months 200)

300*1=300(February2013) (Eleventh Month of 2012-2013)

Total: 2500 (12 Months)

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To make this calculation so, it is required to configure the below steps

Step1: SPRO->IMG->Payroll->Payroll India->Professional Tax->Define Professional Tax Grouping Details

Table: V_T7INP1

In this step, we define the personnel area and subarea groupings for Professional Tax (PTax) which are used to group all personnel areas and subareas that contribute to the same professional tax circle.In the below mentioned table enter the PTax Grouping no mention the End Date as 31.12.999 Start Date as 01.04.2012(Any Other effective Date).

1. Enter an alphanumeric value for the group name in thePtGrpfield.

2. Select a state in theRegionfield.

3. Enter the zone number valid for the state of Maharashtra in theZone No.field.

4. Enter the zone number valid for the state of Maharashtra in theDiv. No.field.

5. Enter the registration certificate number in theRegn. Certfield.

6. Enter the professional tax office circle name in theCirc. Namefield.

7. Enter the professional tax office circle number in theOff.CircNofield.

8. Enter the address of the tax office circle by clicking on the address button on the toolbar.

9. Save the entries.

Step2:SPRO->IMG->Payroll->Payroll India->Professional Tax->Assign PTax Groupings for Personnel Areas and Subareas

Table:V_7IN0P_PTX

In this step, we assign professional tax groupings created in the previous step to personnel areas and subareas.

Activities

1. 1. Enter a personnel area in thePers.areafield.
2. 2. Enter a personnel subarea in theP.subareafield.
3. 3. Enter a personnel area and subarea grouping for Professional tax that is to be associated in thePS grp.Ptaxfield.
4. 4. Save wer entries.

In this step PS Grouping for Ptax -29 which is defined the previous has to be assigned to the respective personal area.

Step3:SPRO->IMG->Payroll->Payroll India->Professional Tax->Assign Amounts for Professional Tax Deduction

Table: V_T7INP4

In this activity, we assign a Professional Tax (PTax) rate to a slab code. Slabs are salary brackets as specified for a State by the respective State Government or local authority.

To assign rates to slab codes for a state MP, we must first define the slab code and then assign serial numbers, maximum limits and the rates.

Example

Step4:SPRO->IMG->Payroll->Payroll India->Professional Tax-> Maintain Method and Form Layout for PTax Groupings

Table: V_T7INP3

In this activity, we assign the calculationmethodused for a slab code in a region and specify the layout of the form to be submitted.

Select the state in theRegionfield.

1 Enter the professional tax slab code name in theSlab codefield.

2. Enter the method or function name for PTax calculations in theMethodfield.

3. Enter the time dependent key entry inT596Ftable to indicate the lawet in theForm lawetfield.

4. Enter the start and end dates for the period.

5. Save the entries.

Maintaining the Master Data

It is required to maintain the infotype 0588 Other Statutory Deductions (Subtype 0003).

Step6: Process the Payroll

Under the Deduction side, we could see the PTax deducted for that employee as 200 for the months of April-12, May-12......till January-13.

For the month of February-2013 the PTax is calculated as 300.

January-2013

February: 2013

Form16-Summary of Payslip

Form16 –Summary –February2013:

For the March-2013 month the PTax will be calculated as follows.

Form16 –Summary –March2013

In the month of February 2013 the PTax will calculated as 300.However in the Form16 Summary of the Payslip the aggregate amount of Professional Tax for the entire year will be reflected as 2600 instead of 2500.

In the month of March 2013 the PTax will calculated as 200.In the Form16 Summary of the Payslip the aggregate amount of Professional Tax for the entire year will be reflected back as as 2500 instead which is correct..

Related Notes:The related SAP Notes for Maharashtra PTax

Bibliography:Related Links:

1. http://taxguru.in/goods-and-service-tax/new-profession-tax-rates-after-mahrashtra-government-budget.html 
2. http://wirc-icai.org/wirc_referencer/indirect%20tax/Profession%20Tax%20Act.htm    

Sincerely

Govardhan Reddy

SAP HCM Consultant

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Disclaimer:This document does not contain thecopyrighted content or material own by others.The coding or technical names used in the configuration screen shots are purely set as just examples and doesn't belongs to the real time systems or material own by others. Any resemblance with the real time system or material own by others is s just a coincidence. The numbering, wording, coding are provided in screen shots are to give better understandings to the forum users. I am fully abide by the rules and regulations of the forum. The prime motive is to serve the forum users better.