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author's profile photo Former Member
Former Member

Withholding Tax in SD

Hi Experts

Business scenario : Company gives its assets on hire to its customers and obviously has to deduct

withholding tax as per the Income tax act (INDIA). Business expects this to be deducted at the time of invoice iteself. So, it has to happen at the time billing document posting.

So, what kind of configuration is needed for this? Pls guide me.

Thanks a lot

Laxmi

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2 Answers

  • author's profile photo Former Member
    Former Member
    Posted on Apr 29, 2008 at 06:32 AM

    Dear Sridevi,

    As of Standard SAP..you don't have the functionality of Withholding Tax on Customer Master...but in scenarios like yours where it is applicable it is best to create a Vendor Master with the same Customer Name...and link that to the Customer Master (in Company Code Data)...then you can maintain the Tax.

    Reward Points if it helps,

    Regards,

    N

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  • author's profile photo Former Member
    Former Member
    Posted on Apr 29, 2008 at 06:51 AM

    Hi,

    For this you need to maintain the With holding tax config in Financial Configuration and also require to attach With holding tax codes to your customer master.

    After made above settings settings shows the withholding tax amount at the time of billing after release to accounts.

    http://help.sap.com/saphelp_47x200/helpdata/en/94/bc813a23b0e86ee10000000a114084/frameset.htm

    Please go through above link and might you get some idea for the same.

    Regards

    Goutham

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    • Former Member

      Hi

      I would like to do as below to get the required result.

      -- PR00 = 1000 INR (FG price)

      -- ZSER = 200 INR (Service price)

      -- J1W1 -


      > set to calculete from service condition above

      withholding tax 3% so when double click on j1w1, system should show that cond.base value = 200 INR

      Appreciate any comments on this.

      regards

      Laxmi

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