How to apply with holding tax?

Hi guys,
While creating invoices, based on the supplier sites and withholding tax rate it will automatically apply the withholding tax on invoices while we validating it or paying the invoices.
But here we have an issue that what if the tax rates are changing for every 6 months? We need to modify withholding tax for supplier sites for every six months. But my client is not willing to modify tax rates for supplier sites for every 6months.
What my client expecting is he wants’ to select withholding tax type while creating PO. While we are creating invoice if we match this invoice with PO then he want to with hold tax the amount from paying.
Is this possible through personalization / customization or any suggestions?
We are expecting any suggestion that will help us to come over this issue.

Hello,
For a record in BBSEG you can have multiple records in the data file which corresponds to Structure BWITH which allows more than one value for field WT_WITHCD. For ex:
BBKPF
Field1      Field2
a     bb
x     yy
BBSEG
Field1      Field2     Field3
a     bb     ccc
x     yy     zzz
BWITH
Field1      Field2     Field3     WT_WITHCD
a     bb     ccc     WT_WITHCD1
a     bb     ccc     WT_WITHCD2
a     bb     ccc     WT_WITHCD3
x     yy     zzz     WT_WITHCD7
x     yy     zzz     WT_WITHCD8
x     yy     zzz     WT_WITHCD9
Hope this gives you some help to proceed further.
Best Regards, Murugesh AS

Similar Messages

How to calculate with holding tax for the open item

Dera all,
Can you tel me how to simulate with holding tax for the open item? i will try do it using FI_WT_F110_CALCULATE FM but it dosnt work. plz help me
regard
nawa

Hi Sushil,
can you please elaborate on how you resolved it. we are facing the same issue with BAPI not calculating the withholding tax data.
Thanks,
Sanket

How to caculate with holding tax using vendor number

Dear All,
I need to calculate and simulate the with holding tax amount before the FI document post. input should be the vendor number fisical year and the company code and the with hoding tax base abount. plz help me to do this
regard
nawa

Hello,
For a record in BBSEG you can have multiple records in the data file which corresponds to Structure BWITH which allows more than one value for field WT_WITHCD. For ex:
BBKPF
Field1      Field2
a     bb
x     yy
BBSEG
Field1      Field2     Field3
a     bb     ccc
x     yy     zzz
BWITH
Field1      Field2     Field3     WT_WITHCD
a     bb     ccc     WT_WITHCD1
a     bb     ccc     WT_WITHCD2
a     bb     ccc     WT_WITHCD3
x     yy     zzz     WT_WITHCD7
x     yy     zzz     WT_WITHCD8
x     yy     zzz     WT_WITHCD9
Hope this gives you some help to proceed further.
Best Regards, Murugesh AS

How to creat the Varient for 1099MISC With Holding Tax

How to create the Variant for 1099MISC With Holding Tax ?

HI,
please follow the below steps to create variant at report.
tcode se38
report RFIDYYWT
pass all the parameters
press save icon
give variant name
retrive the variant in report
tcode se38
report name RFIDYYWT
press : shift + F5
or get varinat icon.
I hope above will resolve your issue.
Regards
Madhu M

With Hold Tax formula..(if any condition required to applied)

Dear Experts,
Formula where we will put in the wealth tax? In case company is required to pay rent. Up to Rs. 20000 need not required to deduct the tax?
or
TDS required to deduct in professionals only if professional charges exceed Rs.20000.
For this purpose where we define the formula?
Thanks in Advance
Regards,
Venkat

Hi
There are multiple ways to look at it:
1. In the path specified in the previous post, for a combination of With Holding Tax Type and Code, you can define the amounts and the rates. For eg, under 194C, there is a tax Type CI and Tax Code C1. Now in this you need to deduct TDS @ 2% upto Rs 20000 and TDS @ 10% above Rs 20000. So in the formulae, you can maintain the following configuration
Tax Type Tax Code    Base Amount Upto     Percentage
CI               C1              20000                            2
CI               C1               999999999                   10
However, there are certain issues here:
a, There is no provision for validity dates and place to maintain exemption nos
b. For different vendors you may have differentials rates from IT. In that case you may need multiple tax codes to take care of specific rates.
2. You can use a BADI to write your own custom logic. The BADI is FQST_CIN_WITHITEM
Regards
Sanil Bhandari

Calculation of with holding tax

The requirement goes like this.
We have to first remove the with holding tax data from the vendor master.
And created 1 KR(amount : 1000) & 1 RE(amount : 2000) document type.Also we posted both the above invoice documents in one Z1 clearing document.
Then add the with holding tax information in vendor master.
Then we executed the report RFWT0020 for that vendor and the document number.Its updating WITH_ITEM table with only the KR total(1000) under WT_QSSHH field.Its not considering RE total.
I debugged the program RFWT0020 and found a function module FI_WT_GET_P_WITH_ITEM which performs the with holding tax calculation.When i checked the function module,its fetching from global memory.
Is there any user exit or BADI for this.We are using 4.7 version.
Please suggest how can i update the correct with holding tax amount in WITH_ITEM table.

Hi,
i´ve used this badi for MM (incoming invoices):
MRM_WT_SPLIT_UPDATE
Best regards.

Re: With holding tax is not picking up while excution of RERAPP

Dear team,
While executing the RERAPP.With holding tax is not picked.We are working on 4.7 version.We had suggested a badi to pull the with holding tax field.Still system is not showing any caluculation.Plz advice us if any one of you did the immplimenttation in 4.7 and how you resolved this problem .So that it would be help ful for us too.Please do the need ful.
Regards,
Suma.

Dear Sir,
What we did is all the with holding tax data include the basic amount calculations manually in excel there after given the input to the system through accounting interface. You can try with your abaper. Plz make sure that GL code length and currency .This has been done through so much work around. Technical person will guide you .If you still facing the problem where exactly your facing then i can help you out.Please be more clear what you did till now then only i can explain you with clarity.
Regards,
Suma.

Regarding With holding tax with CIN version

Hello SAP gurus
I've done all the configuration required for the extended withholding tax type-also have updated the tax type and code in the vendor master.
How to configure automatic surcharge & education cess., With holding tax certificate . What is business place in tds.How to create remittance challan for tds.what is clearing of invoice against down payment.How to create Annual returns of tds.
While making tds entry with miro, systeam taking dummy profit center.
So what does configuration required for above error.
I will assign full points
Regards
Divya

Hi,
If i am not wrong, the system is reverseing the deduction it has made at the time of adv payment.
Its not deducting again.
Consolidate all the three documents -
- Adv pay
- Inv
- Payment
and you would appreciate the beauty of the concept.
Cheers
Raghu

With holding tax decuction from T.Code F-02 with out sp. gl indicator

Hi All,
While making the payt to service vendor my client do not want to use the functionality of advance payt, which can be performed through T.code F-48. They wants to treat this advance payt as a normal payt to vendor but they want to deduct the with holding tax from this payt.
I have tries to use T.code F-02 with posting keys 25 Dr Vendor & 50 cr Bank. But when i am using this posting key for vendor (i.e.25) System gives me warning message saying with holding tax information is ignored & system do not deduct TDS from the payt made to vendor.
But when i am using PK 29 with sp gl indicator A for advances from T.Code F-02 system allows me to deduct the with holding tax against vendor paytment.
Please guide me how to duduct the with holding tax from vendor payt. without using sp. GL indicator for advances.
Thanks
Sonal

Hi
why ur clien not want advance paymeny through Special GL, what is the issue/purpose
see TDS deducted at the time of Advance payment and at the time of invoice
when u use F-02 for TDS deduct of vendor without using special GL and u useing 25 vendor and 50 bank
in this case tds not deducted here vendoir is debit but withouse advance indicator
becuase u given vendor advance , but in this case entry not showing advance or
in SAP Standard system TDS deducted of advance payment when u using 29 posting key for vendor this is stsndard key of advance vendor
so convience ur clien u use Advance payment method with Special GL, if they not agree then ask what is the purpose u not using Speacial GL through Advance paument
if any query, revert back
Regards
Roobal

With holding tax Returns

Dear Sapgurus,
we are using 2 different with holding tax type one is at the time of inv posting and 2nd is payment posting which is earlier, we had created tax types and tax codes we assigned in vendor master assgined to company code and automatic posting also, finally if any vendor pay advance then we calculate tds it will post to tds g/l account, after that in sap any option how to file the tds returns.
Regards
Veeru

Dear,
Once you have posted TDS then usually at the month end you will run below transaction to complete the process..
1. Use transcation J1INCHLN (this will club all TDS posted per section and paid)
2. Use transaction J1INBANK (when you make TDS payment in Bank then bank will give you challan number which you have to update in the system)
3. Use transaction J1INCERT (this will print the vendor certificate (this is usually an year end practice)
4. Use transaction J1INMIS (this will provide consolidated report for TDS)
Regards,
Chintan Joshi

With holding tax base amount for 1099 vendors with discounted payment term

Hi Friends,
We have a below situation for 1099 vendors,
Some of the 1099 vendors are set-up in the system with payment term with discounts i.e. 2% if paid within 10 days
As per config, system posts with holding tax base amount at the time of posting payment.
With holding tax rate is 0%,
Based on modified net amount calculation
and
Cash discount calculation before w/tax calculation
When we have vendor with input tax, system excludes tax amount at the time of payment but for the with holding tax base calculation amount system does not exclude input tax type.
Which causes difference in 1099 misc vendors
Below is the example of how system calculates the amount.
Invoice $ 1000, payment term 2% if paid within 10 days. Input tax 7.25%
Payment going out=
$1000- $ 72.5(tax 7.25%) = $ 927.5 18.55 [2% discount] = $ 908.95 (payment amount)
With holding base calculation =
$ 1000 100 (2% discount) = $ 900
Difference between payment going out and with holding tax base = 908.98 900 = 8.98
Can some one please tell me how to get rid off this difference?
Moreover, please tell me if its normal to have 1099 vendors with discounted payment term.
Any thoughts on above situation will be helpful
Edited by: Shefford William on Jan 28, 2008 11:36 PM

Dear All
i am also having the same problem. The example is
Net invoice Value   = $ 100,000
Input Tax @ 15%   = $ 15,000
Total Invoice Value = $ 115,000
Cash Discount = 20% with in 20 days
On payment the system behavior should be
Debit Vendor invoice Value   = $ 115,000
Debit Cash Discount @ 20%    = $   20,000   ( 20% of the Net Invoice Value that is 20% of $ 100,000)
Credit W/H Tax deduction @ 3.5% = $ 3,325 ( 3.5% of 95,000 the Inv Value - Cash Discount that is $ 115,000 - $20,000)
Credit Bank Account = $ 91,675 ( Inv value - Cash Dic - W/H tax that is $ 115,000 - 20,000 - 3325 = 91,675)
However at the time of payment system is calculating tax as follows
Debit Vendor invoice Value   = $ 115,000
Debit Cash Discount @ 20%    = $   20,000   ( 20% of the Net Invoice Value that is 20% of $ 100,000)
Credit W/H Tax deduction @ 3.5% = $ 3,220 ( 3.5% of 92,000 the Inv Value - Cash Discount that is $ 115,000 - $23,000. This $ 23,000 is only calculated for W/H tax calculation that is 20% of $ 115,000 )
Credit Bank Account = $ 91,780 ( Inv value - Cash Dis - W/H tax that is $ 115,000 - 20,000 - 3220 = 91,780)
this is not the common practice when using the net base value in the system.
Can any one help me in this regard. I really have been stucked in this problem for many days
Regards
Bilal Athar

Reg: Correction of Wrong With holding tax amount Values Posted via BAPI

Hello Experts,
I have posted some invoices using BAPI_ACC_DOCUMENT_POST with With holding tax code and amount now the thing is that ..the document is posted successfully with Wrong With hoding tax amount data in TABLE WITH_ITEM due to this while executing t-code F-53 ( Outgoing payments ) its not calculating the with holding tax amount for the invoice .
Now i wan't to correct ( Negate some values) the values in WITH_ITEM table.....
How am i going to do it..!
Plz..experts help.
Plz waiting for your input

Dear All,
this is not an error but the Standard System Design. Please read the note 611844. Only if You insert manually the WT amounts during the posting You will see them into the WT TAB after the posting. If You make the System to calculate the WT Aamounts automatically, no WT amounts will be reported into MIRO/MIR4. You can see them into the follow on document.
I hope this helps.
Mauri

Restriction of some with holding tax code when doing F-43

Dear All,
       How can i restrict previous fiscal year's with holding tax codes while creating a vendor invoice (i.e F-43).
      Its an urgent requirement, i would really appreciate if some one gives the input.
Thanks
Suresh

Dear Rob,
          yeah i know that, but unfortunately i cannot write the validation because the pre-requisite condition requires an entry from WITH_ITEM table, which is not there in the list of structures and tables while writing the validation.
         Please provide the alternate or else let me know how to include the WITH_ITEM table in the list of structures & tables.
Thanks
Ravi

DOUBT IN CIN (WITH HOLDING TAX TDS)

Payment occured first and Invoice occured afterwards. Now my question how to configure the system for calculation of with holding tax amount.

Hi Prasana,
In the TDS configuration, Define Withholding Tax Types You have to put a tick in the "Per Year, Starting with Month" accumulation type & enter the starting month.
Next in the define witholding tax code you have to put a tick in the box "wtax form" in the calculation Tab.
Next in the define formulas for calculating withholding tax you have to enter the formulas for calculating tax as follows:
To base Amount, Witholding Tax Rate etc. can be maintained.
Hope this helps.
Regards,
AVD.

With holding tax report with material and qty fields

Dear All,
Is there any standard report available with with holding tax data with material and qty fields.
Thanks,
Sekhar.

dear Friend,
Withholding tax will deduct on services. Hence Material and quantity is not relavent.
There is no report is available also.
reg
Madhu M

How to apply with holding tax?

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