2 Replies Latest reply: Nov 9, 2010 1:54 PM by MAURIZIO BIANCOTTI RSS

TDS Exemption config

kuldeep dubey
Currently Being Moderated

Hi Experts,

 

Formula based withholding tax codes are defined. When am putting exemption % in vendor master it is not working.

Please help to activate withholding tax exemption rate for specific vendor.

 

Regards,

 

Kuldeep Dubey

  • Re: TDS Exemption config
    Paul Paul
    Currently Being Moderated

    Hi Kuldeep,

     

    This issues there in Extended withholding tax in ECC 6.0.

    The solution for this is that you creat exempted tax codes and assign them to the vendor master.

    It should work.

     

    Regards

    Paul

  • Re: TDS Exemption config
    MAURIZIO BIANCOTTI
    Currently Being Moderated

    Dear Kuldeep Dubey,

     

    please kindly take care of the note number 314204 that says:

     

    If there is a withholding tax exemption (for business transactions on

    the credit side to be set in the master record of the vendor / for

    business transactions on the debit side to be set in the company

    code-specific data for the withholding tax code), then the system uses

    the reduced amounts (that is, the "Reduced withholding tax rate for

    exemption" and "Decreased reduction of base amount") for the percentage

    rates and the amounts for reducing the base amounts.

     

    This means that:

     

    If the you want to use the exemption rate in the vendor master data,

    then it is not possible to use the wtax code with formula.

     

    or

     

    In that case, if withholding tax code is defined with formula, you

    should delete the exemption rate in the vendor master record, and

    mantain the required entries in the formula.

     

    (i.e. if withholding tax rate is 15% and exemption is 10%, then the

    reduced rate should be 13,5% -> 15* 10%= 1,5 - 15 = 13,5)

     

    This is the system behavior.

     

    I hope this helps.

     

    Mauri

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