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author's profile photo Former Member
Former Member

Works Contract Tax

Hi experts,

does any body worked on Indian Works Contract Tax requirements and if so could you explain me how you processed the things.

actually my requirement, on vendor invoice we have to deduct Works Contract Tax @2% or 4% (it depends). But always a Tax Code credits the tax amount to vendor account where as my requirement is to debit the tax amount. Any possibility in SAP.

regards,

mallik

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  • author's profile photo Former Member
    Former Member
    Posted on Apr 24, 2007 at 09:06 PM

    Hi,

    If I understand your requirement, you do not want to reduce the Vendor line item but instead want to post the works Contract Tax to a GL Offset Account.

    Instead of using Tax Codes, map the Works Contract Tax in Extended Withholding Tax.

    When you create a Withholding Tax code for the Works contract Tax, put the posting Indicator as 2 or 3 depending on your requirment.

    In case you need any help, let me know.

    Regards

    Mahendra

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