Withholding tax

[Former Member]

Hi,

I want to show the TDS deducted on the amount paid based on the withholding tax applied on the base amount. There is a tab of withholding tax in F-58, i think it should get filled automatically based on what amount i enter for the line item in either partial payment tab or residual payment tab.

But it always shows zero. My FICO consultant team says config is already done. I want to ask is there any specific config required for this. Pleeeaaase help.

Also, i conceptual question, In my invoice i have 3 line items say 100,200,300 total of 600. I have a w/h tax on base amount say 300. Now when i make payment how does the system decide whether to cut tax for line item 3 or will it first cut it from line item 1 + 2, then onwards whn i pay it will cut tax.

or, its like for the first 300 paid it cuts tax no matter paid for which line item, and then onwards doesnt cut tax for remaining amount. I am unable to undertand this scenario ....

please please help... I have already asked this question many time ... no help yet ... I am less on time .... Plzz

[Former Member · Accepted solution]

<a href="http://help.sap.com/erp2005_ehp_02/helpdata/en/e5/078d0b4acd11d182b90000e829fbfe/frameset.htm">Understanding of with holding tax</a>

[durgasankar_innamuri]

Hi,

There is one program namely RFWT0010. once go through this program it will ask you the document number once you specify it will show the entire configuration as well as calculated amount of tds details clearly.

Regards,

Sankar

[Former Member]

> Hi,

> I want to show the TDS deducted on the amount paid

> based on the withholding tax applied on the base

> amount. There is a tab of withholding tax in F-58, i

> think it should get filled automatically based on

> what amount i enter for the line item in either

> partial payment tab or residual payment tab.

> But it always shows zero. My FICO consultant team

> says config is already done. I want to ask is there

> any specific config required for this. Pleeeaaase

> help.

> <b>If it is a classinc with holding tax then go to OBC7 and slect your country and the with holding tax which is assigned to the customer/ vendor master. Then if you want to deduct the WHT at the time of effecting the payment then flag POSTING WITH PAYMENT under withholding tax payment. Then this will trigger at the time of making the payment</b>>

[Former Member]

Thanks Gopal,

Q1) How can I display w/h tax code for individual line items in invoice thru FB60.

Q2) Also, I have entered an invoice of 15000, while my w/h tax base amount is 6000. The system is properly calclulating w/h tax amount on rs 6000 at the time of invoice posting. But when i make payment through F-58 of Rs 6000 the system considers the w/h tax amount to be on Rs 15000 and shows the proportionate tax amount on Rs 6000 in the w/h tax tab. How to solve this.

[Former Member]

> Thanks Gopal,

> Q1) How can I display w/h tax code for individual

> line items in invoice thru FB60.

<b>To display the withholding tax base amount and tax amount, go to FBL1N and go to Change layout icon on top of the screen (Ctrl+8) and select withholding base amount and withholding tax amount and push it to the left hand hand side and save it. This will show for a vendor what is the tax base amount and tax amount.</b>

> Q2) Also, I have entered an invoice of 15000, while

> my w/h tax base amount is 6000. The system is

> properly calclulating w/h tax amount on rs 6000 at

> the time of invoice posting. But when i make payment

> through F-58 of Rs 6000 the system considers the w/h

> tax amount to be on Rs 15000 and shows the

> proportionate tax amount on Rs 6000 in the w/h tax

> tab. How to solve this.

<b>When the withholding tax is happening at the time of payment, system does not post any withholding tax at the time of invoice posting. At the time of invoice posting you need to enter the withholding tax exempt amount and based on this system will calculate the withholding tax base amount and stores it. There is no accounting entry generated st this point. When effecting payment system will show you the Gross amount and withheld tax amount. It is not considering the whole amount. What it shows you is Gross amount for payment and the withholding tax amount based on the exmpt amount you entered. Once you effect the payment system will generate entry for the net amount after posting the tax withheld. This is perfectly OK and I dont see any inconsistency.</b>