Withholding Taxes

[Former Member]

Hi,

Anybody had handled withholding taxes for the vendors in SRM PO?

The withholding tax details for vendor are not replicated to SRM.

There is a option to activate it for a vendor in SRM.

Any inputs on this process will be appreciated.

regards,

Ramesh-

[former_member183819 · Accepted solution]

Source SAP :-

I found some information on withhold tax.

Have an understanding of how and where withholding tax is calculated when entering invoice in SRM 5.0

As of SRM 5.0 you can now calculate an enter withholding tax when entering invoice.

Some countries require taxes to be levied at the start of the payment flow rather than

Paying the tax directly to the authorities.

New Functions in SRM 5.0 Withholding tax

Limitation:-

You must determine whether withholding is active for particular country and or a particular vendor in the IMG activity

Activate Withholding Tax

It is important to note however that this setting is independent of the FI system , Company code and supplier . Withholding tax will still need to be set in the FI system for the company code and the supplier

Note 546564 - FAQ: Withholding tax

Muthu

Edited by: Muthuraman Govindasamy on Sep 8, 2008 12:30 PM

[Former Member · Accepted solution]

Hi Ramesh,

May I know if Withholding tax is supported in SRM version 4.0 as well? Or it is only available in version 5.0 onwards?

Rgds,

Cire

[Former Member · Accepted solution]

There is no special settign from SRM perspective, if the WIthholdinn tax setttings are done in the R3 they are applied when and GR and IR are done. This valid only in ECS and CS scenario. I dont think standlone scenario will support this.

Regards

Ramesh