Extended Withholding Tax
Respected SAP Gurus,
Please try to explain Extended Withholding Tax.
Also what are the step in configuration of the same??
Also whether it is done by MM guy or FICO one?
Kiran Bhat replied
Withholding tax is the basically a tax withheld during the Vendor payment. So when making the payment to vendor the amount will be deduct (i.e withheld tax)
from the invoice and paid. The customer is actually the tax to tax authorities.
you can visit for more info.
<a href="http://help.sap.com/saphelp_47x200/helpdata/en/af/03813a88d3eb66e10000000a11405a/frameset.htm">Withholding Tax</a>
For the config steps you go to the IMG path FI > Financila accounting for the Global settings > Withholding Tax
Withholding tax configuration is done by FI person.
hope this helps