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Customer Withholding tax process

Former Member
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Hi,

Presently I am working on Customer Withholding tax process for my client. I have done the complete configuration. Coming to End User process, when I am making full payment against Customer invoice that time I am able to trigger Withholding Tax value and posting the same. In the Report (T code: J1INMIS) also Withholding tax values are appearing.

But when I am making the partial payment against Customer Invoice, I am able to post the withholding tax amount. But the same is not appearing in the Report (T code J1INMIS).

So could you please let me know where exactly i am doing the mistake.

Thanks in advance,

Rams N

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Answers (1)

Answers (1)

Former Member
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Hi,

Withholding Tax is calaculated at the tiem of Invoice not at the time of partial payment.

TDS liabiltity get generate at the time of Invoice or at the time of Advance payment, not at the time of partial payment against to invoice.

J1INMIS - Withholding Tax information available only for the above scenarious.

Thanks & Regards,

Rama Mohan Bangaru

Former Member
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Hi Rama Mohan,

What ever you said is right. Wtax is calculating at the time of Invoice. But Wtax amount is posted when we receive the payment from the Customer. See I will explain with example.

Customer Invoice Amount u2013 1000. At the time Customer Invoice I am giving Wtax Code u2013 TP (194H Customer Payment WTax code & Tax Rate 11.33%) and it is automatically calculating the Wtax amount. But it will not effect in the Customer Invoice. See the below entry.

Customer Account (Wtax Code TP) Debit 1000

Rental Income Credit 1000

At the time of Customer Payment, he is making Partial Payment of Rs.354.68 and deducting Rs. 45.32/-.

See the below entry.

Bank Account Debit 354.68

TDS Certificate Due Debit 45.32

Customer Account Credit 400

Now he is making final Payment against Customer Invoice.

Bank Account Debit 532.02

TDS Certificate Due Debit 67.98

Customer Account Credit 600

1st Partial Payment Rs.45.32/- is not displaying in the J1INMIS. But I am able to see Rs. 67.98/- in the J1INMIS report.

Thanks In Advance.

Rams.N

Edited by: Rams N on Jul 10, 2009 9:18 AM

Former Member
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hi,

Please Let me know either TDS liability get generated at the time invoice or not, if TDS generated at the time invoice what is the need at the time of partial payment.

Please could explain how you generating liabilty for the customer at the time of partial payment.

Regards,

Rama Mohan

Former Member
0 Kudos

Hi Rama Mohan,

Client doesn't know how much Wtax amount will be deducted by their Customers. Our Client is ignoring Wtax at the time of Customer Invoice. So what I am doing is, I created a Wtax code (TP) for PAYMENT. At the time of Customer Invoice I am selecting Wtax code u2013 TP (Wtax code for PAYMENT). By using this Wtax code system will consider this Invoice is subject to Wtax in the payment proces.

Customer is making partial payment, that time they are deducting Wtax and sending the remaining amount to our Client. So in the F-28 I am giving the Amount received from Customer and select Wtax TAB. There manually I am giving the Watx amount against this partial payment.

NOTE: If you don't specify the WTax code (TP) at the time of Customer Invoice, then system won't allow you to enter the Wtax amount manually in the Customer Payment process.

Rams N

Edited by: Rams N on Jul 17, 2009 12:34 PM