please check the following:
1. The withholding tax types and indicators must be defined as Liable'.
Please check this via vender master data (fk02).
2.Please check field status group for withholding tax fields in
transactions OB14 (inserting the field status variant of the Company Code oby6 and the field status group of the g/l account that You can find running FS00) and OB41 (posting key, in DP case 29). Check the account group for the GL account
assigned to the vendor reconciliation account in FBKP.
These should be set as "optional".
Select group --> Taxes
Suppress Req. Entry Optional Entry
Withholding Tax Code X
Withholding Tax Amounts X
I have a question similar to the original question.
When using F-51 for vendor retention (1099 vendors), select Doc Type = VA, transaction "Transfer posting with clearing", Posting Key = 39, Vendor Account, Special GL indicator = R, I received the Information message "Withholding tax information ignored, Message no. 7Q332". Diagnosis: "The activity selected uses posting keys that are not payment relevant. This meant the withholding tax was not processed even though documents with withholding tax information were selected"
The objective is to have the full retention amount as the Withholding (WH) Tax Base Amount, but the resulting VA document has zero WH Tax Base Amount due to this Posting key according to the message. I have checked the Vendor Master & original invoice - they both contain the appropriate WH Tax Base & Tax Code. Posting Key 39 has the checkbox on Payment transaction. WH Tax Codes are setup OK.
My workaround is to have the user complete F-51 and run FBL1N and manually add the WH Tax Base Amount. There must be a better solution to get the Tax Base Amount to automatically populate into the new transactions resulted from F-51.
Any suggestion is appreciated. Thanks.
For withholding tax key RENT in india above rs.180000pa we charge@10% which is rs.15000pm.suppose for the first 4 months rent is rs15000pm (no tds is deducted) and onwards it is rs.20000pm,as per the rules tds will be 10% of rs.20000pm and as it is going over rs.180000pa we have to deduct tds for earlier period also. how should i configure this one?please help me out.
thanks in advance