What's New Viewer - SAP S/4HANA

Withholding Tax Calculation

With this feature you can process withholding tax for each posted document in your system.

Technical Details



Functional Localization

Localized for India

Scope Item

Not applicable

Application Component

FI-LOC-CA (Contract Accounts Receivable and Payable)

FI-LOC-CA-IN (Contract Accounts Receivable and Payable: India)

Available As Of

SAP S/4HANA 2020

Additional Details

The withholding tax calculation logic is as follows:

During a fiscal year, when you post documents, the system accumulates the tax base amounts for each business partner or a group of business partners that belong to the same legal entity, and calculates and posts withholding only if the total base amount exceeds the threshold. If the total base amount in a period is lower than the threshold, no tax is posted in the document (zero tax amount).

You can use the Mass Activity: Post Withholding Tax transaction to post withholding tax at the end of a fiscal period, when the accumulated document amount does not exceed the threshold.

Effects on Customizing

You can define a threshold of the tax base amount for a combination of a withholding tax code and withholding supplement tax code and assign a validity period by entering a start and end date to it. You can make the settings in Customizing for Financial Accounting under Start of the navigation pathContract Accounts Receivable and Payable Next navigation step Basic Settings Next navigation step Withholding Tax Next navigation step Country-Specific Settings for India Next navigation step Define Threshold for Withholding Tax CalculationEnd of the navigation path.