Remittance of Withholding Tax 

Purpose

You are required to follow a specific procedure when remitting withholding tax to the authorities.

Prerequisites

Before you remit your withholding tax, you must have entered any provisions for taxes on services received.

Process Flow

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       1.      When the time comes to remit a given sort of tax (see Tax Due Dates), you create a remittance challan.

The system creates an accounting document to transfer the withholding tax items to the appropriate bank account.

       2.      You send the challan to your bank with a check for the appropriate amount.

       3.      After a few days, the bank sends you a bank challan to confirm that it has received your check.

       4.      You enter the bank challan in the system.

When you do so, the program records the bank challan number in every withholding tax item remitted. This information may be required in order to substantiate your accounts.

Result

You can create withholding tax certificates for the withholding tax items that you have remitted.