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Object documentation Withholding Tax Type Locate the document in its SAP Library structure

Definition

See withholding tax type. For generic information about withholding tax types, see Structure linkDefining Withholding Tax Types.

Use

Customizing

You define withholding tax types in Customizing for Financial Accounting (FI), by choosing Financial Accounting Global Settings ® Withholding Tax ® Extended Withholding Tax ® Calculation ® Withholding Tax Type ® Define Withholding Tax Type for Invoice Posting and … ® Define Withholding Tax Type for Payment Posting.

Country Version India comes with one set of sample withholding tax types for calculating tax at invoice posting and another one for calculating tax at payment posting. Both sets contain two separate tax types for each of the supported sections of the Income Tax Act (see Extended Withholding Tax), one for basic-rate tax and one for the surcharge.

All of the withholding tax types are customized so that certificate numbers are not assigned at this level. They are assigned by the programs that you use for printing the withholding tax certificates instead.

When you have defined the withholding tax types, define the withholding tax codes and recipient types.

Master Data

Assign the appropriate withholding tax types to your vendor masters and customer masters.

Day-to-Day Activities

When you enter a document that is liable to tax (for example, when you enter a vendor invoice), the system automatically applies the tax type and tax code appropriate to that vendor or customer.

See also:

Accounts Payable (FI-AP)

Accounts Receivable (FI-AR)

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