wrong withholding tax for customer during payment received

[Former Member]

Hi

i have done the necessary customization and maintain customer master accordingly to get withholding tax automatically. but system considering wrong base amount to calculate the withholding tax for customer during payment received. please consider following example:-

Invoice amount - 100000

Sales tax - 10% which is 10000 (appex amount)

in above example, system should calculate withholding tax on amount 90000.00 (100000-10000). but system calculating withholding tax on 100000.00 which is wrong and leading to tax on tax situation.

in case of vendor, system reaction is perfectly OK.

please revert with your suggesation to resolve the problem.

Regards

DD

[Lakshmipathi]

Have a look at the following notes:-

1) Note 801839 - Withholding tax from SD: Determination of base amount

2) Note 1359268 - Master note for Indian Budget 2009 for Witholding Taxes

thanks

G. Lakshmipathi

[Former Member]

Hi,

Check the "withholding tax type" customization. The Base Amount calculation should be based on "Net Amount"

Regards,

Gaurav

[Former Member]

Dear Sir,

Not sure why system is calculating differently for customer when the same thing is working for vendor. I tried to seach SAP Notes for this but not able to found note on this. As you are aware, we can use derive percentage rate of WHT or we can use derive with holding tax base amount - Percentage subject to tax. In your case it will be 90%. Please revert back if I had interpretted the issue wrongly.

Warm Regards

Milind Sonalkar