1% withheld on 17% GST

[Former Member]

Dear Members

I have to deduct the 1% withheld on 17% GST. 17% GST is deducted accurate at the time of invoice (fb60), but when I post the payment from f-53, 1% withheld is not calculate according to 17% GST, it calculates on gross or net amount which you set on it.

Kindly guide how i configure in system

Regards

[Former Member]

Pavi i tried your config, but no affect on calculation

[Former Member]

Hello,

Did you assign the percentage in Vendor Master.

Thanks.

[Former Member]

Yes,,, but at fb60 we shall charge the input tax but at the time of payment we shall deduct 1% withholding sales tax,, which would be the 1% of net amount. (less sales tax & SED). sales tax having different rates 17%, 19 %, 22%.

[Former Member]

Hello,

Follow this settings

Financial Accounting->Financial accounting global settings->withholding tax->extended withholding tax->calculation->withtholding tax code->define formulas for withholding tax code.

Do changes in vendor master->withholding tax accounting->exemption %.

In your case which means 1% is tax and 16% is to be exempted.

Thanks.