How the TDS (with holding tax) process will affect the MM service procurement flow?. Please give an example aslo.please.
Do i need all 3 vendor group to be created in SAP or single account group as Service Provider will do?
1. Contracter (Service provider also use some materials of his own for the service and raise the bill single bill for service and material (with sales tax).
2. Service provider (no tax payable)
3. Service provider (tax payable)
DHRUBACHARAN BEHERA replied
The witholding tax is calculated depending upon the entry made in the vendor master "Witholding Tax" tab .The sections like 194C,194H,194J,194I etc whatever is entered accordingly the tax will be calculated in the MIRO/Invoice.If no tax is to be deducted than at the time of MIRO the entries can be deselected which will not calculate tax.