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Withholding Tax

Hi,

For a Particular Vendor, user has received a Withholding Tax Exemption Certificate (For Section 194J). As per the certificate, for this particular vendor - System should calculate the Withholding Tax @ 0.01% up to Sum of Rs.33 lacs. And after Rs.33 lacs, it should calculate Withholding Tax @ 10%

We have created Two Tax Codes and Tax Types - JG-J8 for Invoice Posting and JH-J9 for Down Payment. We have done the setting for the same in Withhodling tax formula. It's working fine at the time of Invoice Posting and at the time of down payment. But the problem is, system considers the limit of Exemption separately at the time of Invoice Posting and at the time of Down Payment. And if we will continue this, then the system will consider the Exemtion limit as Rs.66 lacs (33 lacs for Invoice Posting and 33 lacs for Down Payment) which is wrong.

Is there any method, by which we can set the combined limit of Rs. 33 lacs for Invoice posting as well as Down Payment.

Thanks in Advance.

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  • Posted on Sep 06, 2011 at 05:42 AM

    You can use the BADI MRM_WT_SPLIT_UPDATE to have your own logic built in. But this work for Logistics invoice

    regards

    Sanil

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  • Posted on Sep 06, 2011 at 07:10 AM

    HI,

    In standard system there is no povisions to accumulate the base value payment type and Invoice type tax base.

    You need to write you own coding only.

    Regards

    Madhu

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