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EXPERTS

Former Member
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HI

CAN ANYBODY DEFINE THE WITHHOLDING TAX,WHAT WILL BE THE EFFECT WHEN WE POST THE INVOICE WITH WITHHOLDING TAX AND WITHOUT WITH HOLDING TAX.

ALOK

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Answers (1)

Answers (1)

Former Member
0 Kudos

> HI

> CAN ANYBODY DEFINE THE WITHHOLDING TAX,WHAT WILL BE

> THE EFFECT WHEN WE POST THE INVOICE WITH WITHHOLDING

> TAX AND WITHOUT WITH HOLDING TAX.

> ALOK

hi alok,

witholding tax is a special category tax configured by FI depending on business process.

for example if a customer is involved in certain promotional activities and if he is eligible for certain payments as onetime which is not part of SD pricing ,then tax is implicaple on while posting billing doc system would calculate the applicable withholding tax and post the accounting doc .

reward if helps !!!!!!

Former Member
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Further to add Mukund's points, the best ex would be for withholding tax is Employee tax payments, normally companies deduct the tax infront from the employees which they pay it Govt in the year end.. so the tax which they are levying from employees will be treating it as Withholding tax....

this is my guess. dig more data in google..

Cio

shankar1242

Former Member
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siva sankar.....ur guess is correct!

tats the exact definition of withholding tax!