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author's profile photo Former Member
Former Member

Config is it related to WHT tax or Tax procedure

Tax authorities have introduced a requirment to withhold sales tax on payments made to us by our custoemrs @

20% of sales tax value on our invoice.

>> On our inovice we have both Excise duty (ZFE) and Sales tax (MWS). our customer while making payment to us

for the invoice value will withhold sales tax @ 20% of slaes tax value i.e 20% of MWS value.

Explain how the figure / number above has been calculated

>> We need to ensure that at the time we receive collection (SAP t-code f-28, f-29 and f-32) the withholding tax

deducted by our customers can be appropriately recorded in Sales tax withholding GL. For example if our invoice

value (excluding taxes) is Rs 100 we add 50% Excise duty thus it becomes Rs 150 and then 16% sales tax is added

thus it becomes Rs (150+150x16%) = Rs 174. Our customers, at the time of making payments will deduct 20% of

the Sales tax amount i.e. 20% of sales tax amount which is 20% of Rs 24 = Rs 4.8. This sales tax withheld by the

customers is required to be debited to our GL code 1013057.

>> Trying to record taxes manually but not yet tested as GL accounts setting are ticked as "only balances in local

currency".

Functionality Request Details

>> On our inovice we have both Excise duty (ZFE) and Sales tax (MWS). our customer while making payment to us

for the invoice value will withhold sales tax @ 20% of slaes tax value i.e 20% of MWS value.

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  • author's profile photo Former Member
    Former Member
    Posted on Feb 24, 2013 at 03:28 PM

    it is urgent please anyone help me out

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