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Former Member
Jan 01, 2011 at 08:02 AM

Withholding Tax Base Amount

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Dear Consultant,

I active Extended Withholding Tax for Indonesia. i use W/ tax type at payment. i have a case where the w/ tax base amount & w/ tax amount are incorrect when do receive payment(F-28).

Here the case:

i make billing which there are two components/items. say it, Service charge 500 USD and Spareparts 1200 USD. the W/ Tax Base amount is 500 USD only. in condition type when billing show the correct structure that the W/ base amount is 500 USD(Service Charge).

But when i do receipt payment transaction(FI) from customer, the w/ amount is 34 USD (2% * 1700 USD). where the withholding tax base is 1700 USD not 500 USD. and the w/ tax rate is 2%.

Why system used 1700 USD as a base amount to calculate w/ tax amount? but in SD billing the w/ tax base amount is 500 USD. Can you guys tell me how to correct this issue?

Regards,

land lord