Calculate 10% TDS on advance rent for vendor related Real Estate contracts

[Former Member]

Hi Experts,

In my current RE-Fx implimentation project for a retail client; I need to calculate 10% TDS on advance rent payable to vendor.

What withholding tax configuration needs to be done & maintained to calculate 10% TDS on advance rent for commercial Lease-In contracts?

Thanks

Shantanu Kar

[former_member196871]

Hi,

There is no special Withholding tax configuration required for SAP RE-FX. All you need to do is check with your FI consultant for all relevant configurations and tax codes created for invoice and payment for section 194I, maintain the tax codes at the vendor master.

At contract creation you have to maintain the withholding tax lines at posting parameters tab by pulling the information from the partner data. The withholding tax will be considered at periodic posting.

Regds,

Hardik Sharma

[Former Member]

Thanks Hardik,

I've been able to pick the W/T accordingly.

Thanks

Shantanu Kar