Withholding tax at the time of Downpayment

Dear all,
Can anybody tell me what is the process of extended withholding tax while paying downpayment using f-48 to vendor?
will award maximum points.
thanks & regards,
A.Anandarajan.

Hi,
Basically while creating tax code you have to create a with holding tax type for payment posting. Then assign it to the tax code. Then assign this tax code to the vendor in the vendor master.
Then only you can deduct WHT at the time of making down payment to vendor.
I am not giving the fullsteps as i am in the view you have already created tax code for invoice posting.
Thanks

Similar Messages

Withholding tax at the time of invoice-urgent

Hi all,
i want to know that, for withholding tax calculation at the time of invoice, is there any option of calculation of WHT before/after discount.
As i can see that in calculation at the time of posting...but not at the time of invoice.
can any one suggests me with that?.
i will assign points for any reply.
thanks

Looks like this is not possible. Check the following link.
http://help.sap.com/erp2005_ehp_03/helpdata/EN/e4/5c823ae35c3769e10000000a114084/frameset.htm
In the above link, click on "Defining Withholding Tax Types" in the tree on the left.

Witholding tax at the time of Invoice, payment and advance

Dear experts,
I have few questions as below. It would be great if you can help me out in this :
In vendor master I have two WTH tax codes for invoice and payment and marked as liable.
Incase of invoice (FB60) posting system is calcu;ating correctly and posting, but while posting no popup for to rectify the WTX code also no base amount is populating in WTH tax tab of invoice posting. Is this correct way??
While making payment for the same invoice through F-53, system is again calculating on same open item and no popup, until I go to WTH tax tab and delete the tax amount. What is lacking in my customising of WTH tax code (payment type), to restrict WTH tax calcutaing twice ??
While making advance payment by F-48, system not calculating WTX tax and showing tax code is mandatory, even though tax code (V0-tax exempt) entered, no WTH tax calculation happening. I have checked all Field status of document type and recon account, nothing is mandatory. I dint know why?? Please help in this regard.
Thanks in advance.
Regards
Abhi

Hi madhu
Thanks for explaining the process it works.
Regarding the error I was facing earlier to enter the tax code in F-48 for the tax category was marked as ' * ' in the advance reconciliation GL. I have removed them and now the error is not coming.
But now for the same or advance payment with F-48, I am not able post the document, though the payment WTX code is showing but not calculating the amount for the same.
The error is
"Withholding tax amount exceeds total bank line item amounts."
Message no. 7Q320
How to post it. Please help.
Regards
Abhi

Calculation of withholding tax after the certain amount

Hello all,
I would like to ask you when you can customize the settings for withholding tax. We have received the request to set a new witholdng tax which should calculate after $1000 before IVA (if invoice before iva is $1001 should calculate withholding) if the amount is 1000, it should not calculate the withholding tax.
Is it possible? so far its set with base amount 100% and calculation witholdng tax rate: 5%, posting indicator 1.
thanks a lot for your appreciated feedback
regards
Hana

Dear,
Please use minimum and maximum amounts for your requirement in withholding tax calculation, go to spro-->financial account >financial accounting gs>withholding tax >extended withholding tax> calculation>min/max amounts>define min/max for types.
Here, give the mini amount as 1000. Now check how the system will calculate.

Vendor service tax at the time of down payment

Hi sap Guru's
Service Tax payable on Vendor Advances at the time of down payment.
Requirement: New tax code X5 need to create with CST@5% on 80% of Bill value and service Tax @12.36% on 70% of Bill value. While calculating the CST amount, system should take the base value by excluding the service tax amount.
I had created the requirement and at the time of posting in F-43
The service tax calculating.
But when i am posting in F-48 the tax is not calculating. What is the reason
For down payment f-48 i need to make any configuration, or need to maintain anywhere the tax code x5
Please advice me why at the time of down payment F-48 the tax is not picking.
Thanks & Regards,
Ramesh

Thanks you very much for your reply sudhir,
If i select ,"Posting without tax allowed" check box why the system is not going to calculate the tax
And in recon account should i maintain G067. or any else.
Thanks,
Ramesh

Problem at the time of Cal. of Service Tax at the time of MIRO

Hello,
When we are running MIRO, at that time system is calculating wrong amount of Service Tax against clearing agent Invoice verification.
In that if we change the Quantity to 0.001 unit then system will calculate right amount of service tax.
In OBYC Tcode we have maintaine Transaction ZCA for Clearing Agent. But when we see in the Table T030A - Transaction Keys and assignment to Groups, Transaction ZCA is not there.
How can i assign the Transaction ZCA to this table ?
CAn anyone help me ?
Ragards,
SAN2008

CAn any one solve this problem ?
Ragards,
SAN2008

Withholding tax for Invoice posting

My client has WHT set up for payments in Mexico but they also want to set that up for Invoice posting, should I create new Tax type and code for that? And also to which accounts I need to define that type & code?
I am confused. Please help.
Thanks,
ST

Hi S T
Withholding tax can be at two types
* Withholding tax at the time of invoice posting
* Withholding tax at the time of payment
As you have withholding tax at the time of payment, if you want WHT at the time of invoice also, then you have to create type and codes under that
Kindly let us know if you need any help further
Thanks
Prasad

Error:withholding tax base amount exceeds the amount of customer/vendor lin

Dear Team,
I am encountering an issue while doing f-48.I am providing you brief explanation below:
There are two different down payment request has been made against two difference P.Ou2019s.
1. Down payment amount for P.O No. 3600011383 is Rs. 581235/- and
2. Another Down Payment for P.O No. 3600011395 is Rs. 1162470/-
Now we want to deduct the TDS against Sl No. 1 is Rs. 21,50,570 ( i.e., Rs. 581235+1569335 (P.O No. 3600011383
Simply, TDS Deduction are as follows :
Sl No. 1 Withholding Base amount should be 2150570/- instead of 581235/- and
SL No. 2 Withholding Base amount should be Rs. 1162470/-.
Plz do the need

Hi Rajeswari ,
The amount is mentioned as the base amount in PO.At the time of Downpayment they want to change the base amount instead of 581235 the user want to give the base amount 21,50,570 the mentioned like.But system is showing the message like the above .Plz let me know.
Regards,
Suma.

Withholding tax for foreign company outside of the U.S.?

Dear all,
We are a group of people who are going to develop apps for the applestore.
We are going to form a "company" outside of America, most likely in B.V.I.
Although we have looked through some discussions about developer program, still kind of confusing about the actual regulation.
We have seen many different answers time to time, so we decide to ask the ALMIGHTY YOU for the newest version.
1.Does a FOREIGN company developer(outside of the U.S.) needs to pay the withholding tax to the U.S. or to the country where the company is located or none at all?
2. "If" we need to pay the withholding tax to the U.S. no matter where the company locates, how much will it be?
3 .Which forms and applications do we need to fill out and provide to Apple as a foreign company developer outside of the U.S.?
These questions might be asked many times already, please help us to clear our mind.
We truly appreciate!!

1.) Where the company is located
2.) See #1
3.) Depends on your country
If you want the 'newest version' for this information, this is the last place to use. Apple won't comment here...always go directly to Apple with such questions.

What is the difference between Classic and Extended Withholding Tax

Hi,
Can some please tell me what is the difference between Classic Withholding and Extended Withholding Tax. How can I look at the Withholding Tax deducted from a particular invoice?
Number Guaranteed.
Thanks.

Dear Prem,
Withholding tax is the basically a tax withheld during the Vendor payment. So when making the payment to vendor the amount will be deduct (i.e withheld tax)
from the invoice and paid. The customer is actually the tax to tax authorities.
you can visit for more info.
Withholding Tax
For the config steps you go to the IMG path FI > Financila accounting for the Global settings > Withholding Tax
Withholding tax configuration is done by FI person.
Hope this helps you
Prem

Withholding Tax Calculation Error for Vendor Down Payment Clearing:Oct '09

Hi,
We are trying to incorporate the new Withholding Tax Structure w.e.f. 01-Oct-09.
There were 3 scenarios possible:
a. Invoice = Down Payment
b. Invoice < Down Payment
c. Invoice > Down Payment
While 1 & 2 were taken care of effectively, the third scenario did not work as expected. The scenario is as follows:
1. Down Payment (Date : 30/09/09)
Amt : Rs. 40000/-;
Withholding Tax @ 15% : Rs. 6000/- (40000 * 15%)
Surcharge @ 10% : Rs. 600/- (6000 * 10%)
Edu Cess @ 2% : Rs. 132 (Rs. 6600*2%)
Higher Edu Cess @ 1% : Rs. 66 (Rs. 6600*2%)
2. Invoice (Date : 02/09/09) - As per new TDS Rates
Amt : Rs. 50000/-
Withholding Tax @ 10% : Rs. 5000/- (50000 * 10%)
Surcharge : NIL
Edu Cess : NIL
Higher Edu Cess : NIL
3. DPC (Date : 02/09/09) - Reversal of TDS calculated in Down Payment (Step 1) above.
Issue:
While making J1INCHLN, amount is adjusted as Rs. -1000/- (hence zero) not payable.
Also, the Surcharge, Edu Cess & Higher Edu Cess are also getting reversed in DPC.
As suggested by SAP Note No. 1372734 - Handling of downpayment clearing scenarios after budget '09, the scenario does not seem to work.
Actual payable should be worked out as under:
Invoice : Rs. 50,000/-
DP : Rs. 40,000/-
Bal : Rs. 10,000/-
TDS @ 10% : Rs. 1,000/-
All TDS Challans, Certificates & Returns must reflect Rs. 1000/- in the Challan.
Require assistance.
Regards,
Kapil Tilwani

Hi Kapil,
The following needs to be taken care of -
The message controls settings as the note suggests must be set as W.
When entering the details the logic is Vendor Debit amount is Tax amount + 1
The Vendor credit line, the tax code has to be assigned with the advance amount (amount for which the challan has been created) as the tax base amount and the tax amount will be the extra liability that needs to be created.
In your example -
The tax amount will be - 2000 ( the debit at the time of downpayment clearing should have been 4000 instead of 6000)
Tax base amount - 40000 (Challan for this amount has already been made at the time of downpayment made)
The vendor Debit - 2001 (2000 + 1)
The vendor credit - 1
Note - Tax amount and base amount has to be made manually in the withholding Tax tab for the credit entry.
Please revert for any clarification.
Thanks and Regards,
Anit

Extended withholding tax problem - India

Hello
I have assigned ewt tax codes in vendor master. ewt tax code on invoice posting as well as payment posting are assigned. However i am facing two problems.
1.In case ewt is deducted on invoicing, again it is getting deducted on payment for that invoice. One thing that comes to notice is that the payment ewt tax code appears in witholding tab at the time of invoice. However if i remove it manually and then post the invoice then it does not deduct the ewt on payment.Is there a way to allow only the invoce tax codes to appear during invoicing? The other tax code on ewt on payment should not appear in the withholding tax taab in FB60/MIRO
2.At the time of downpayment - Advance is given to the vendor. I will again deduct the tax, however later when an invoice comes it can be for more or the same amount. How do i not deduct the tax on invoicing ?? Manually removing is a really bad option, as people tend to forget. That is also acceptable in case the vendor is giving complete invoice equal to advance, what can be done in case invoice exceeds the advance amount?? Here ideally i would like to deduct tax only for the balance (invoice amount in excess of advance given).
Any ideas how we ccan meet these real world requirement
Regards
Sameer

Hi Sameeer,
The solution is not to enter the PAYMENT withholding tax code in the vendor master. Only enter the invoice withholding type and code and the payment withholding type.
The following are the scenarios
1. Normal invoice and payment - At the time of invoice the system uses only the invoice tax codes and the payment tax codes are blank. Therefore TDS is deducted only for invoicing and not during payment.
2. Advance, Invoice , Balance Payment - At the time of advance payment the system gives a popup for entering the payment withholding tax code (as it is blank in the vendor master). The user can choose to enter the withholding tax. Therefore tds is deducted on the amount paid. At the time of invoice booking tds is deducted on the entire bill amount. Now use F-54 to clear the invoice against the down payment. At this time the system will reverse the excess tds deducted (during invoicing) into the vendor account. Note however that if the tds certificate is already given to the vendor for the advance the user has to manually change the base amount during invoicing. Also the tds certificate and the returns will also be automatically correct.
Rgds
Shivram.
Assign points for useful answer.

TDS at the time of advance payment(urgent)

Dear all,
I have done the configuration of TDS at the time of invoice and payment. i checked. it is woking well both at the time of invoice and payment.
The issue is when i do the advance payment and when i click the withholding tax tab, it is not going into that tab and because of that tds at the time of downpayment is not getting deducted.
Since we have short time for golive i want to solve this issue urgently.
please guide me.
Will award full points.
Thanks & Regards,
A.Anandarajan.

Dear Friend,
First create the down payment request in F-47, then make the payment of this down payment request in F-53 or F-58 ( with special GL indicaator F)
That should resolve the issue.
Assign points if useful
regards
Venkatesh

Error at Withholding tax

Hi,
I am calculating withholding tax on down payment. At the time of down payment the system has calculated WHT properly and i have also posted invoice, then also system has calculated WHT. I want to clear this down payment against invoice. As per my knowledge the system should reverse the entry of with holding tax at the time of down payment. I do cleared the down payment in f-54 and then i tried to clear the payment aganist invoice in f-44.
But the system is giving error as " With holding tax invormation ignored"
Msg no. 7Q332
Diagnosys: the activity selected uses posting keys that are bit oayment relevant. This means WHT was not processed even though documents with WHT information were selected. Start the transaction again with new activity so as to include the WHT information for the document selected.
System response: In customizing you can swithoff the msg under change msg control for document processing in application &Q.
Procedure: check to see whether you can use a different activity or another transaction (FB05)
Could any one tell me if i change the msg control, does this WHT will calculate properly? I checked all the settings and fields status for all the posting keys which were triggered in these transactions.. But no use..
Could any one help me in this issue.
Thanks in Advance
Sabera

Hi
If you have not done the Configuration settings for the Reversal of TDS in F-54 follow these steps.
1. Create Business Place
2. Create Section Code
3. Assign Factory Calendar to Business Place
4. In Define Withholding Tax Type for Payment Posting, change the option to Central Invoice Prop.
Advance or DownPayment :
Use Transaction F-48 to make Down Payment, if you make a Down Payment Request through F-47, then you can make Down Payment either by F-48 or by running APP F110.
Invoice :
You can use any Transaction F-43, FB60, (Park -->F-63,F-65 & Post FBV0)
F-54 :
Here in the Entry Screen give the Invoice Number and in the next screen select the Down Payment Document and Double Click then check the last Column, you must get that Amount in that Column and then Simulate, You will see the TDS Amount will be Debited(Reversed).
The Reversal will not happen for Earlier Down Payment Documents, as they are posted with earlier configuration.
While assigning withholding Tax Types and Withholding Tax Codes in Vendor Master, kindly make a NOTE.
Give the Withholding Tax Type and select the Liable CheckBox and do not give Withholding Tax Code, leave it Blank.
While making Down Payments or Invoices, you will get a PopUp Box and there you select the Tax Code by pressing F4.
This is the Best Practice.
Hope this makes you a clear picture.
Regards
Venkat

F110: how to pay an invoice with Withholding Tax and a credit memo?

Hi All,
in my SAP I've defined a Withholding Tax type for Payment Posting.
I've posted a vendor invoice with with Withholding Tax.
Later I've posted a credit memo with Withholding Tax which must compensate the prevuois invoice.
When I launch t.code F110, SAP, in the right manner, proposes to pay the invoice less the amount of the credit memo.
But the calculation of the Withholding Tax (that it should post al the payment time) is wrong: SAP proposes to post the amount of the Withholding Tax recorded in the table WITH_ITEM at the moment of the posting of the invoice. Instead, from it, SAP should detract the amount of the Withholding Tax recorded in the table WITH_ITEM at the moment of the posting of the credit memo.
Why does SAP doesn't consider the amount of the Withholding Tax of the credit memo?
Could anyone help me?
Thanks

Dear Rossi,
if You defined the WT TYPE at the payment time this means that the WT amount will be calculated at posted during the F110 run as per the invoice as per the credit memo.
If they are the same amounts and refer to the same wt type and code, when You run F110, they should match even for the WT calculation. It is clear that if You inserted manually the WT base amount or the WT amount into the invoice, the system will not do any automatic calculation but it will use these amounts that can be different from the one auto matically calculated by the system for the credit memo.
I hope this can help You.
Mauri

Withholding tax at the time of Downpayment

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