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Former Member

Customer Withholding tax process

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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1 Answer

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    Former Member
    Jul 10, 2009 at 04:23 AM

    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

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    • Former Member Former Member

      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