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