Request for info. on withholding tax

Question

Hi,
what configuration steps i have to follow to configure withholding tax(i.e classic) not extended withholding tax.
I know how to configure extended withholding tax but facing difficult to configure withholding tax.
In the IMG we will be using two tabs one is withholding tax and one is extended withholding tax.Please provide info on withholding tax not extended withholding tax
Please provide steps
Thanks in advance
HAGI

Answer 1

<b>Configuration for Witholding Tax</b>
SPRO>IMG>Financial Accounting>Accuntas Receivable and Accounts Payable>Business Transaction>Incoming invoices/credit meos>Carry out and check settings for withholding taxes.
1) <b>Maintain tax codes</b>: In OBC7 maintain the withholding tax codes and their attributes like percentages and basis like gross or net etc.
2) <b>Maintain the account determination</b> for each and every tax codes through OBYS.
Other optionals:
Withholding tax is only relevant for specific posting transactions in certain countries and even there, only for some groups of vendors. You therefore determine, depending on your company code, business partner, and the business transaction, the cases in which the fields for withholding tax become ready for input .
1) Maintain the country keys (The standard system delivers most of the countries forms to be submitted to the tax authorities)
2) Maintain Formulas OB98 (if needed, Like US and Japan need scaled basis calculation.)
3) The recipient categories
<b>Master Data andTransactions</b>
You need to specify in the vendor master record, a withholding tax code to enable the system to calculate the tax amount, which defaults when you enter a line item if the vendor is subject to withholding tax.
If a vendor is exempt from withholding tax, you must specify this in the master record the details of  exemption certificate and the date up to which the exemption is valid. If an exemption exists, the system either posts no withholding tax or the reduced tax rate.
Withholding tax is only relevant for specific posting transactions in certain countries and even there, only for some groups of vendors. You therefore determine, depending on your company code, business partner, and the business transaction, the cases in which the fields for withholding tax become ready for input .