on 08-14-2009 2:46 PM
Hi gurus,
Please assist me with this, my client want to charge vendors for witholding tax, i maintained this in vendor master record(witholding tax tab), but when i do sales order, it does not show, at invoicing the amount is not deducted. And i want the WHT to be displayed on the invoice to be given to vendor.
Thanks
Maureen
ok, tnxs
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Hi,
There are two types of Withholding tax, one to be applied at the time of Invoice and other during Payment.
If you want to apply at the time of invoice, please choose only those Withholding Tax types and tax codes
that are relevant for Invoice and check the box liable. The tax so deducted will be displayed to you
while doing MIRO. Kindly revert back if you need further clarification.
Regards,
Sadashivan
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Sorry your question is not clear.
As you would be aware witholding tax is nothing but certain amount by way of tax is deducted from the Payee's account and the company will pay the tax to Government. This means, witholding tax is applicable in case of rent payable, salaries paid to employee, interest, professional charges etc.
In your case, if the Vendor do some process on your behalf and charge only for that service, then when you pay to vendor, you can deduct witholding tax from that amount.
Perhaps, if you can explain the scenario in detail, suitable suggestion can be given.
thanks
G. Lakshmipathi
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Hi,
You enter a service order from the vendor for some professional or technical service(you have to choose the specific section code)
The withholding tax has to be applied at the time of invoice that is MIRO in MM department. If the finance department is making the
direct entry they can raise the invoice through F-43 on Vendors. During this time the Withholding tax information has to be
displayed with basic tax, education cess, higher edn. cess. Let us assume order is for Rs.10000 and these three tax component comes to Rs.150 , system has to deduct this amount and balance amount of Rs.9850 is payable to vendor through FI department in code F-53. Hope you understand the process. Reverse is the case in case you provide some services to third party and while receiving payment the tds is deducted by the party and balance amount is receivable.
Regards,
Sadashivan
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