Withholding tax purpose

[Former Member]

i have gone throug the threads and confused.

what is the withholding tax purpose is. is it related to fi only or sd also, if in sd also required then at what scenario it is required. please tell

[Former Member]

hi

u2022 At the time of Bill Passing or Making Payment which ever is earlier TDS is deducted

u2022 At the time of Down Payment TDS is deducted

u2022 At the time of Booking Invoices TDS is to be deducted

u2022 On due date Payment will be made to the Government for Tax Deducted Source for previous month.

u2022 TDS certificate will be printed on annual basis.

u2022 At the year-end Annual Return will be filed.

Extended Withholding Tax Functionality of SAP will be used for Managing Withholding Tax in SAP.

Extended Withholding Tax functionality allows following:

u2022 Track and Report Withholding Tax Surcharges separately

u2022 Adjust Withholding Taxes when you Clear a Down Payment against an Invoice

u2022 Prepare Withholding Tax Certificates and Annual Returns.

regards

[former_member217082]

Hi

The withholding tax purpose is to tell that what tax (input / output) is flowing to FI. Withholding tax is for both SD & FI modules. as there will be integration between SD & FI.

Regards

Srinath