How to calculate withholding tax on Rs 1

[Former Member]

Dear All Experts,

I have configured withholding tax part in system. It is working absolute fine for higher amounts but when I supposed to post invoice for Rs 1 it is not calculating TDS for Rs 1.00 !

Where I have missed the configuration ? I have checked the minimum and maximum but no luck.

Please guide or provide if anybody of the forum have gone through the same ! Guidance will be appreciable.

Regards,

Sharvari Joshi.

[former_member765905]

Hi Expert,

Just try this below changes in Test Client(Sand Box)..

Create the Withholding Tax Type with the selection of Base Amount Reduction Check box for Invoice Posting.

Do check the settings in Withholding Tax Type for Payment Posting of Minimum Check Options.

and Select the Withholding Tax Formula in creation of Withholding Tax code and

Define Formulas for Calculating Withholding Tax with respect to the Withholding Tax Type and Withholding Tax code..

Regards,

GK

SAP

[Former Member]

Dear Gopi,

No luck !

Can you tell me how to maintain the formula exactly ?

Regards,

Sharvari.

[Former Member]

Hello Sharvari,

Please check the rounding off rules..So, obviously TDS on Re. 1/- even @ 2% will be in paise and if the rounding off rules says that round off, then it will be zero.

Hope this helps.

Vikas.

[former_member765905]

Hi Expert,

Provide the provide the Currency, Withholding Tax Type, Withholding Tax Code, Withholding Tax Country Key and Valid From

and Select this entire row and Click on Formula for Calculating Withholding Tax and Here you provide "To" Base Amount - 1(Maximum Amount of which the Withholding Tax to be calculated) and provide the Withholding Tax Rate: Provide your Tax Rate and Save (Note: To Transport this configuration, you need to generate the Transport Request manually by Selecting Menu -- Table View -- Transport and save to New Request and Transport.

Try this..

Regards,

GK

SAP

[Former Member]

Hi ,

Go to Path : SPRO u2192 REF IMG u2192 Financial Accounting u2192 Financial Accounting Global Settings u2192 Withholding Tax u2192 Extended Withholding Tax u2192 Calculation u2192 Minimum and Maximum Amounts u2192 Define Min/Max Amounts for Withholding Tax Codes

check the minimum amount

Thanks,

Raviteja