What is the difference between Classic and Extended Withholding Tax

[Former Member]

Hi,

Can some please tell me what is the difference between Classic Withholding and Extended Withholding Tax. How can I look at the Withholding Tax deducted from a particular invoice?

Number Guaranteed.

Thanks.

[Former Member · Accepted solution]

Hi Prem,

In one shot i can say that in EWT you have Withholding Tax type and Withholding tax code. you can assign many tax code to one tax type.

where as in WT you have only tax codes.

So that you can create one tax type for Adavances and one for Invoices and assign GL accounts based on this type

Hope this clears your question

Regards

Ashish Bohara

[Former Member]

Dear Prem,

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.

Withholding Tax

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 you

Prem