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Former Member

Extended Witholding Tax Scenario (India)

Jan 28, 2017 at 07:19 AM | 102 Views

Hi,

I was asked a question in an interview and i wasn't able to answer that. Hope any one here might be able to help.

Question : How the configuration will be done in Extended witholding tax (India) where invoice is raised of rs 10000 and charging tax only on 6000.

FIN Posting and Taxes
FIN (Finance) | extended witholding tax
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2 Answers

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    Soumya Ranjan
    Jan 31, 2017 at 07:21 AM

    Hi,

    For configuration part , i think the base amount should be charged of on 60% in stead of 100%.

    Regards

    Soumya

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    Shinas Hamsa
    Jan 29, 2017 at 01:20 PM

    TDS at the time of invoice Posting..

    If i understood Your Question;

    Expenses Dr. 10,000

    Vendor Cr. 6000

    TDS Cr. 4000

    Could you elaborate your Question, Plz

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    • Former Member
      Feb 26, 2017 at 05:21 AM

      no,

      if Suppose 10% TDS is deducted then what i am asking is

      Expenses Dr. 10000

      Vendor Cr. 9400

      TDS cr. 600

      (TDS being charged only on 60% of the invoice amount)