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Former Member

withholding tax(urgent)

Dear all,

With regard to withholding tax, if the government changes the rate of percentage in the tax code, how should we configure it? What should we do our previous percentage which we have already configured? What is the step? Please tell.


A. Anandarajan.

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2 Answers

  • Aug 18, 2007 at 05:57 AM

    Dear Anandarajan,

    Your point is valid. Whenever new rates come out vide Budget for the year, we need to change the percentage rate maintained in the Withholding Tax Codes.

    The process is simple.

    Go to Define Withholding Codes in IMG. Enter the Code for which rate has been changed. Maintain the new rate in With/tax rate Box under Calculation Tab.

    This will take effect immediately.So you need to keep in mind the date from which the new rate has come into effect.So it is advisable to change the rate from that date in mind.

    Our old % will no longer be available.

    Pl check & revert back if query persists.


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    Former Member
    Aug 18, 2007 at 07:11 AM


    Withholding tax percentages are specified at tax code level. before that see is there any formulas under withholding tax code.

    If yes specify in the formulas.

    If no specify in the withholding tax code that is sufficient no need to change any other settings.

    Hope this is helpful, if yes assign points, any problem reply me.



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