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COMPLEX WITHOLDING TAX CALULATION

Former Member
0 Kudos

Hello Gurus,

I am stuck with a calculation process in FI and need your help.

Our client is using a three-level extended witholding tax calculation for some of their supplier's invoices.

1st : %2 of total amount

2nd: %2 of total amount

3rd: %0.01 of net amount - after taking off the first two taxes from the total amount.

I am able to calcuate the first two steps on the same posting; however could not find the way for the 3rd step.

Does anyone have a solution?

thanks in advance

basak

Accepted Solutions (1)

Accepted Solutions (1)

former_member198650
Active Contributor
0 Kudos

Hi Basak,

Have you created separate w.h.tax types for all 3 levels?

Regards,

Mukthar

Former Member
0 Kudos

Hello Mukthar,

As you can see above; I did create all three levels and assigned them to the vendor. However in this position; all three levels are being calculated from the total amount.

kind regards,

basak

former_member198650
Active Contributor
0 Kudos

Hi Basak,

In withholding tax code configuration for 3rd level, define base amount as 104% and define percentage rate as 0.01%, then system will calculate the TDS on base amount + Tax amount.

Regards,

Mukthar

Former Member
0 Kudos

Dear Mukthar,

Thank you very much for your help. Finally, I used 96% instead of 104% to reach my goal; but still...

You saved my day

kind regards,

basak

Answers (0)