Region wise/Business Place wise Withholding Tax

[Former Member]

Hi,

My query is related to India. My scenario is like we have a Vendor who has got Withholding Tax (TDS) exemption certification from Govt. Exemption is based on regions. For Example, for region 1 and region 2, Withholding Tax is to be deducted at reduced rate of say 2% whereas for all other regions, Withholding tax is to be deducted at normal rate say 10%.

How is it possible to map this scenario?

Please guide.

Regards,

CS.

[narasimhulu_konnipati]

Create 2 Exemption reasons in WHT Config  through SPRO

1. 2%

2. 10%

Assign the above reasons to tax codes in config. When the invoice is booking, check which one is applicable for exemption like reason 1 or 2. Update the same in Vendor master with certificate and %.

Try this in DEV

Thanks

[Former Member]

Dear Narasimhulu,

Did you mean to create two Withholding Tax Codes and two exemption reasons and at the time of invoice booking, relevant WHT code is to be selected?

Please elaborate.    

[Former Member]

Hi,

Exemption rates are specified in Vendor Master Record, is the Vendor is having different PAN for each region? And if the PAN is different, mulitple Vendor records needs to be created for the same.

Regards,

Jaymin R. Bhatt

[Former Member]

Dear Jaymin,

Vendor has only one PAN but got exemption for few regions only and that to upto some specific amount say 10000000.