Withholding Tax

[Former Member]

Hi,

Need help on WHT scenario :

we have a US client, and scenario is :

- Withholding tax is deducted at the time of payment.

- Vendors will send the invoice with goods($5000) and services ($10000) in one Invoice, and requirement is to WHT should get deducted only from services($10000) and NOT from the goods, when we make the payment.

- While posting invoice we can use WHT tab and put the amount on which we want to calculate the tax, but we are looking for broader option where it will apply different types of invoices coming from interfaces, uploads and not just manual postings.

Is there a way to achieve this?

Thanks in advance,

Nilesh 

[ajaycwa1981]

Hi Nilesh

I agree with Sanil Bhandari 's reply

You will have to play with the Badi and enforce WHT base amount

Ajay M

[sanilbhandari]

Hi

The standard solution of extended with holding tax works on the vendor leg of amount from which the base amount for with holding tax is calculated. This is the reason due to which you manually specify the base amount in with holding tax tab, when booking the invoices manually. So far so good.

If you want a functionality like this in your interfaces as well where the invoices are created through interfaces, I recollect using the BADI, MRM_WT_SPLIT_UPDATE to update the with holding tax amount. We had defined a set containing GL Accounts which will be posted to for services applicable for with holding tax. We read the amounts posted in these GL Accounts and added them together to calculate the base amount of with holding tax. In our case, the underlying assumption was that one vendor will have only one type of with holding tax. There will be no scenario, where one vendor will provide services applicable for only one type of with holding tax.

In essence, you will have to work out your logic in this BADI. This will work only for Logistics invoices both manual and automatically posted via ERS and Interfaces using message type INVOIC

Regards

Sanil Bhandari

[former_member184878]

Hello,

Maybe functionality of Extended Withholding Tax will fulfill your needs.

Clearing with Extended Withholding Tax - Taxes (FI-AP/AR) - SAP Library

br erwin

[Former Member]

Hi Nilesh,

Please use Validation and substitution area , so which gl you are going to post with service amount create rule need to calculate WHT,others will not calculate, as per auto upload method automatically rule will apply the document and tax will get posted.

Thanks.

Regards,

srinivasan s