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Dec 12, 2018 at 05:37 AM

Withholding tax calculation for India - threshold limit consideration for TAN based & Extended WHT

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Dear Experts... need help with WHT calculation & Threshold limit consideration for India

I ahve done with the TAN based config and it works perfect, when we add the details in "Exemption threshold value + Exemption rate" on the 'CIN-TAN Exemption' tab

TAN based exemption is working well in accumulating INV+Payment & calculating the WHT, only if we add any rate like 100% as exemption rate and 30000 in exemption threshold value; system calculates WHT after the 30000 but the exepectaion is after we cross the accumulation there should be no exemption, WHT should be calculated on entire amount as explained in the example

Example :

Expected : WHT should calculate on entire value after threshold limit crossed; Inv/Payment together should be accumulated for the threshold limit

194C - 2% WHT; Threshold limt 30000

Transaction 1 : Invoice A - posted for 20000 - No WHT, as the values is less than the Threshold

Transaction 2 : Downpayment 1 - for 5000 - No WHT, as lesss than the Threshold (Inv A + DP1 = 25000)

Transaction 3 : Invoice B - for 25000 - WHT should be calculated on 50000, as Vendor transactions all together crossed the Threshold value of 30000

Please suggest if there is any tricky to update the TAN-Exemption tab to achieve the above calculation?

I also tried the extended WHT with rate feature, which is working well if we activate 'Accumulation type : Per year, from period' in WHT type + Minimum base amount maintained in the WHT code level - but the problem here is, it will not accumulate INV+Payment :( it gives the exemption seperately for Inv & Payment. The legal requirement is INV/Payment which ever is earlier

PS : Moderators, I have gone through with many discussions on the above in the forum & also referred list of OSS notes, still this issue is not explained clearly! hence I am posting a new question instead re-starting/hijack the old discussions!!

similar questions/discussions in forum :

https://answers.sap.com/questions/76218/tds-exemption-certificate-issues.html

https://answers.sap.com/questions/70787/withholding-tax-threshold-limit-consideration-toge.html

https://answers.sap.com/questions/596839/withholding-tax-tan-based-exemption-down-payment-i.html

https://answers.sap.com/questions/70787/withholding-tax-threshold-limit-consideration-toge.html

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