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Withholding tax for customer

Former Member
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Hi

Can some one pl guide me the steps to deduct withholding tax for customers when we do creation of creditmemos from rebate agreements?

I maintained withholding tax type and tax code under customer master but still system is not calculating with holding tax when we create credit memos why?

Reg

Shan1242

Accepted Solutions (0)

Answers (3)

Answers (3)

Former Member
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s

Lakshmipathi
Active Contributor
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Dear Shan

For information, Withholding tax means to calculate in tax on payments only. In India withholding tax is taken for the TDS sections 194C,194J,194I and soon. In simple terminology, withholding tax is applicable ONLY for the service rendered by you.

This being the case, the question of withholding tax for returns DOES NOT ARISE.

Thanks

G. Lakshmipathi

Former Member
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HI Lakshmipathi,

Thanks for your advise.

We are looking for solution for deducting withholding tax for customers.. hope that's the reason SAP had given option under customer master to maintain withholding tax codes .

But my question here is even after maintaining relevant tax codes in customer master system is not generating any a/c entries when we release creditmemos..

Pl advise if you have any idea.

Reg

Shan1242

Former Member
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Any clues pl

Lakshmipathi
Active Contributor
0 Kudos

Dear Shan

I have also gone through some notes on withholding tax including help menu. What I said earlier holds good. I dont think in India, withholding tax is applicable to customers. May be it is applicable to customers in United Kingdom as indicated in the link. Please go thru.

[Classic Withholding Tax|http://help.sap.com/saphelp_46c/helpdata/en/e5/0780914acd11d182b90000e829fbfe/frameset.htm]

It is also better to consult with some FI experts and let me know whether I am correct.

Thanks

G. Lakshmipathi

Former Member
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Any clues will be highly appreciable?

Its bit important for me to complete asap.

Reg

Shan1242

Former Member
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Anyone having any idea on this?

Surprise hw others are managing this then..

Reg

shan1242