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Calculating WT on Payments and Invoces as well

Former Member
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Hi all,

I have configured EWT Codes and Tax Types for Tax, Surchatrge and Ed.Cess for Payment and invoice separately.

Tax Type ->Tax Code ->Rate-> Tax Base-> Description

I1 -> I1 -> 2 ->Invoice Amount ->WT Cont Inv

I2-> I2-> 10-> Tax-> Surcharge on WT for Contractors Inv

I3-> I3-> 2-> Tax + Surcharge ->Ed Cess on WT for Contractors Inv

P1-> P1-> 2-> Invoice Amount-> WT for Contractors Pmt

P2-> P2-> 10-> Tax-> Surcharge on WT for Contractors Pmt

P3-> P3-> 2 ->Tax + Surcharge-> Ed Cess on WT for Contractors Pmt

I have populated the whole in the vendor master. when posting an invoice I am able to get the Tax calculated based on invoice type codes, and when I am processing automatic pmt program, Tax is again calculated as above

Can any one guide , why this is occuring?

Regards,

Srinivas

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Answers (2)

Answers (2)

Former Member
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Hi all,

I have posted this issue. Can any one including Mr. Avinash Humbrey can respond? The matter is most urgent. As per the advise of Mr. Avinash withholding tax types for Invoice and Payments are not to be populated in the same vendor master. Then, how the payment EWT can be arrived at? How to generate entries for that?

Pls clarify

Srinivas Mannava

Former Member
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Hi

We can change the withholding tax type in the vendor master record before making the any transaction such like down payment to vendor.

As per Indian Law, TDS has to be deducted either on the date of invoice get credited or payment date whichever is earlier.

So, if u have assign invoice withholding tax type in vendor master record and u r making down payment to vendor and u want to deduct withholding tax then First u have to change vendor master record in withholding tax type from invoice to payment type.

If any clarification is required my email id a_humbrey@yahoo.com

Avinash

Former Member
0 Kudos

Hi,

Vendor master (any master reocord) is not changed frequently, so you have to assign tax types Invoice & Payment to vendor. Moreover, if you assign / change a new code, you will have to execute a program (else system willnot allow payment / clearing etc of earlier documents). So based on this, system deducts TDS. When you are posting an invoice, go to Tab - Withholding Tax and remove (delete) not required W/H tax types & codes (in this case Payment related Tax codes & tax types). Now for this document, system will deduct TDS only on invoice and not again when you make payment. Hope this sufficies.

Best Wishes.

Vijaya

Former Member
0 Kudos

Hi

check whether u have assigned both withholding tax type (payment and invoice)to the vendor. Say I1 is your invoice withholding tax type and P1 is your payment withholding tax type. So, do not assign both I1 and P1 at the same to Vendor master.

Avinash

Former Member
0 Kudos

Hi Avinash

Do you mean, I need to create one more vendor master record, for Payment type WTax Codes ?

But I have populated both Payment and Invoice in the same vendor master

Pls clarify my doubt. Is this the wrong?

Regrds

Srini

Former Member
0 Kudos

Hi

i am not saying that we have to create different vendor master record for different withholding tax codes.

We can not populate both payment and invoice in the same vendor master. Then, it will calculate withholding tax twice.

Avinash