Withholding Tax

[Former Member]

Hi Friends,

We have requirement from TDS should be deducted when limit of transaction entered in vendor account cross certain limit. Below is the limit for the same.

Section	Nature of Payment	Payment in Excess of(Rs.)	Individual/HUF	Others
194A	Interest from a Banking Company	10,000	10%	10%
194A	Interest other than from a Banking Co.	5000	10%	10%
194C	Contractors (including advertising & sub-contractor)	30000 per payment or 75000 P.A.	1%	2%
194C	Transport Contractors provide PAN and engaged in the business of plying, hiring or Leasing of Goods Carriage	Nil	Nil	Nil
194D	Insurance Commission	20,000 P.A.	10%	10%
194H	Commission or Brokerage	5000 P.A.	10%	10%
194I	Rent of Land & Building	180000 P.A.	10%	10%
194I	Rent of Plant & Machinery and other Equipment’s	180000 P.A.	2%	2%
194IA	Transfer of Immovable Property other than Agriculture Land (w .e. f. 1-6-2013)	50,00,000	1%	1%
194J	Payment for professional services, technical services & royalty	30000 P.A.	10%	10%
194J1BA	Payment to directors any remuneration or fees or commission by whatever named if the same is not covered u/s 192		10%	10%
195	Payment to Non-Resident	A per applicability on transaction

Kindly advise how to can we achieve. If any development can full fill this kindly advise regarding the same also.

Regards,

Ashu  

[former_member405146]

Hi,

When you define the withholding Tax Type there is option available Accumualation you will have to select this option.

Also you need to set Define Min/Max Amounts for Withholding Tax Codes.

Regards

Anand

[former_member541511]

Hi Ashu,

There is a option to maintain base amount to calculate WT in configuration.

SPRO - financial Accounting - Financial Accounting global settings new - Withholding tax -Extended withholding tax-Calculation - define formulas for calculating Withholding tax.

here you maintain as below for your 194C - 10000

Create with holding tax codes and types and assign as below.

and select the row and click on Formulas for calculating WT

with above settings WT calculated in vendor when they have more than 10000 amount posted .

I think it will helps to you.

Thanks,

NRVI