Dear Experts,
Withholding Tax on Contractors for Bangladesh is having slapwise, where I am using the formula based withholding calculation, but the output calculation is not correct as per the slab.
In formula i have use as under;
1,00,000 0
5,00,000 1%
15,00,000 2.5%
25,00,000 3.5%
99,99,999 4.0%
Below is the client requirement
The tax rate for supplier is always calculated on cumulative amount paid in a financial year. The rate is
Payment upto 1,00,000 Nil,
Payment exceed 1,00,000 but less than 5,00,000 is 1%
Payment exceed 5,00,000 but less than 15,00,000 is 2.5%
Payment exceed 15,00,000 but less than 25,00,000 is 3.5%
Payment exceed 25,00,000 is 4%
For Example,
1) If 1st payment is 25,000, the tax is nill.
2) If 2nd payment is 90,000, then tax is
Total payment (25,000+90,000)= 115000 @ 1% = 1150
3) If the 3rd payment is 500000, then tax is,
Total payment (25,00090,0005,00,000)= 6,15,000 @ 2.5%= 15375 u2013 1150 ( earlier tax deducted) = 14225
4) If the 4th payment is 1200000, then tax is
Total payment (25000900005000001200000)= 1815000 @ 3.5% = 63625- (115014225)= 48150
5) If the 5th payment is 700000, then tax is
Total payment (25000900005000001200000700000)= 2515000@4% = 100600- (11501422548150)= 37075
Please give your valuable suggestion for the withholding settings.
Thanks in advance
Sayed
Dear Sayed
Kindly Check the following Settings in your WHT Configuration :
1) In WHT Type Choose Gross Amount, Post W/tax Amount, Accumulation type per year starting with month 4, Base Amount and w/tax amount based on WHT Code.
2) In WHT Code Choose Percentage subject to tax 100%, Calculation W/tax Formula
3) In Define Formula for calculating W/tax enter :
1,00,000 0
5,00,000 1%
15,00,000 2.5%
25,00,000 3.5%
99,99,999 4.0%
4) Enter Receipant type as Corporate or non Corporate
5) Assign W/tax type to CoCode and Choose W/tax agent and Activate Extended W/tax
6) Assign W/tax type and Code to vendor master and also tick liable for deducting tax
Hope it Solves !!
If doesnot then tell me the error message or amount of wrong deduction
Cheers
IMK
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