WITH HOLDING TASK

[former_member715153]

Wat is with holding task. when i assign withholding tax at the time of payment, tax is calculated on advance, but when i clear the account with partial payment how i need to set the indicator without payment difference.

[Former Member · Accepted solution]

Dear Raghu,

Here the complete details of Withholding Tax

Concept of W/tax -

Withholding tax is an amount withheld by the party making payment to another (payee) and paid to the taxation authorities. The amount the payer deducts may vary, depending on the nature of the product or service being paid for. The payee is assessed on the gross amount, and the tax to be withheld (the withholding tax) is computed in that assessment. The purpose of withholding tax is to facilitate or accelerate collection, by collecting tax from payers rather than a much greater number of payees, and by collecting tax from payers within the jurisdiction rather than payees who may be outside the jurisdiction. It may also be used to counteract tax evasion and tax avoidance.

Config -

W/tax is customized at the below node.

Financial Accounting Global Settings

Withholding Tax

Extended Withholding Tax

Calculation -

W/tax type and W/tax code is defaulted in Vendor Master. Based on the rule of calculation i.e. Invoice Entry or Payment, the system withholds and posts the tax amount to the tax accounts.

Periodically the tax is paid to the Govt. Authorities.

Hope this helps you

Prem.

[former_member715153]

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