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what is the process of amount exempted in extended withholding tax

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what is the process of amount exempted in extended withholding tax in vendor master  exemption from period and to period is there present my client

flow the formula based. in that case we have to create  a lot of tax code. can you please suggested me  is there any procedure without using  of formula based calculation.  

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Answers (3)

Answers (3)

former_member222241
Active Contributor
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Hi,

Please do the following say for example you have examption of 1.67% of WHT whose percentage is 10%. Then in the vendor master go to Withholding Tax tab, please enter following :

1. Exemption Number

2. Exempt percentahe (10 - 1.67 * 10 = 83.30)

3. Enter exemption reason if any.

4. Exempt from - Exempt To (Validity period).

Regards,

Tejas

divya_klsv
Explorer
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Hi

The concept of Exemption amount in Vendor Master is based on the Exemption certificate of the vendor received from the department. Say for example a vendor requires the TDS to be deducted at the lower rate they would have got the certificate from the department. Based on which you need to feed the values in the Vendor Master W.HT section. Here you will give the Exemption Number you are able to see on the certificate, Exemption % and Exemp.From & To Dates. Based on which while the invoice is being prepared against the vendor the TDS will be calculated.

or


If concessional rate  then please use the Accumulation and formula's like

upto 1lk 5 %

1 to 2 lk 10 %

2 to 5 lk  12%.

You can check with this and if they are following any other formula please provide the formula

Regards

Divya S

former_member198650
Active Contributor
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Hi,

Could you brief me how much amount exempts? Does it belongs to only one vendor or for all vendors?

Regards,

Mukthar

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not for the one vendor we got  TDS certificate in that they mention exemption amount its very from one vendor to anthor vendor