Withholding Tax Certificates from Customers 
Withholding Tax Certificates from Customers
Use
You use this program to enter the withholding tax certificates sent to you by your customers.
When you enter a certificate, the system clears the withholding tax to a G/L account that records how much tax your customers have withheld on your behalf, known as the customer tax creditable account. You can offset this tax against your income tax payable at year-end.
You run the program immediately you receive a certificate from a customer.
To access the program, from the SAP Easy Access screen, choose Accounting ® Financial Accounting ® Accounts Receivable ® Withholding Tax ® India ® Tax Withheld by Customers ® Enter Certificate.
Prerequisites
You have maintained the settings in Customizing for Financial Accounting (FI), by choosing Financial Accounting Global Settings ® Withholding Tax ® Extended Withholding Tax ® Postings ® India ® Withholding Tax Certificates from Customers.
Features
Selection
On the selection screen, enter the following data:
In the Section field, enter the official withholding tax key that you use for the section of the Income Tax Law in question.
The certificate date serves as the posting date and the document date.
When you execute the program, the system takes you to the standard
clearing program. You then select which withholding tax line items are to be cleared.
Output
The system creates an accounting document to transfer the withholding tax from the G/L account for the withholding tax deducted by your customers to the customer tax creditable account.
Activities
If you need to reverse the clearing document, you can do so using the standard reversal program.