Threshold limit for exemption rate of TDS deduction

[Former Member]

Hello Experts

I have requirement that, Vendor will have lower rate of deduction certificate for WHT Code.

For cumulative invoices till Rs.5 Lacs, I will deduct only 0.5% and after that, I will deduct at 2% (i.e. normal).

For this I am trying formula for calculating WHT. Please look at the screenshot and guide me, how to configure.

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Meena

[pankaj_pandey2 · Accepted solution]

HI Meena

The Tax code created will  be applicable for all vendors. Moreover SAP has introduced the acumulation at TAN level at Vendor Master Level itself.

You can check with SAP note 1945137. It will help you resolving your issue.

Regards

Pankaj P

[Former Member · Accepted solution]

Hello Pankaj,,

I tried this. But I guess, system considers reversal also. When I reversed transactions on same day, threshold is still shown as consumed.

Any idea onthis?

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Meena

[former_member198650]

Hi Meena,

You have to define as mentioned below:

Regards,

Mukthar

[Former Member]

Will it get activated for all vendors or only for few vendors? How will I tell SAP that, this exemption is applicable for which vendor.

[former_member198650]

Hi Meena,

It will applicable for all vendors, who has maintained with this withholding tax type. If you want to only  for specific vendors, then you have below possibilities:

1. Maintain this code for only exemption vendors and for non-exemption vendors create a separate withholding code.

or

2. No need to maintain any exemption details in the w.h.type formula configuration. You have just maintained exemption details in the vendor master.

Regards,

Mukthar