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author's profile photo Former Member
Former Member

Using Two Withholding Tax Codes for a Vendor at time of Invoicing!!

Please find below scenario:

Dear SAP Members,

I am facing the following issue.

User wants 2 WHT at the time of payment. We have maintained both WHT (V2 & V3) in Vendor master, but still WHT (V3) is not shown at the time of IR in Withholding Tax tab. Please advice.

Scenario Required:

GR Step 1

Material debit Rs. 84

GR/IR credit Rs. 84

IR Step 2

GIIR debit Rs.84

WHT Sales Tax Input (V3) debit Rs.16 Not Showing

Vendor credit Rs. 100

Payment (F-58) Step 3

Vendor debit Rs. 100

WHT Sales Tax Input (V3) credit Rs. 16

WHT Income Tax credit Rs. 3.5

Bank credit Rs. 80.5

Regards,

Mohammed Ali Khan.

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3 Answers

  • author's profile photo Former Member
    Former Member
    Posted on Jul 24, 2009 at 11:59 AM

    Hi Mohammed,

    The client issue is for applying WHT at the time of payment and not at the time of invoice. In the Vendor Master,

    you would have given two wht types, for eg, for contract & rent. For this you would have given 6 codes and 6 types

    for contract and another 6 + 6 for rent(basic + ED cess + SHE Cess). In the liable box,in Vendor Master, you tick only those combination of tax codes and tax types which are relevant at the time of payment. At the time of Invoice you dont have

    to apply TDS. If the requirement is at the time of invoice choose the relevant liable boxes. Check with these parameters and revert back.

    Best Regards,

    Sadashivan

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  • author's profile photo Former Member
    Former Member
    Posted on Jul 24, 2009 at 02:54 PM

    Withholding taxes can be configuraed to be applied at both invoice posting and payment posting, which is the reason why SAP provided both options.

    Provide the details of the withholding tax types of the witholding tax codes V2 and V3 and we can figure out the issue. Also check how you entered the tac codes in the vendor master.

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  • author's profile photo Former Member
    Former Member
    Posted on Aug 24, 2009 at 04:58 AM

    Helpful replies.

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