Withholding Tax Fields 
When you enter a document, there are three fields that are significant for withholding tax:
Withholding tax code
Withholding tax base amount
Amount exempt from withholding tax
You use the system settings to determine whether these fields appear when you enter business transactions. You specify this information at three separate levels:
For every business transaction on vendor accounts, you specify whether it is subject to withholding tax or not. You use the field status definition for the posting key and for the reconciliation account to do this, by suppressing the fields for withholding tax or defining them as optional fields.
For company codes that have business with vendors liable to withholding tax, you choose a special screen variant.
For every vendor liable to withholding tax, you enter a withholding tax code in the master record. The system defaults this indicator when you enter a document for this account.
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If, when entering an invoice, you make no entry in the fields for the withholding tax base and the tax-exempt amount, the system calculates these amounts. If the system is supposed to calculate these amounts and you do not want to enter the amounts manually, you must suppress the fields by means of the field status definition in the reconciliation account.
Note
You should not suppress the field for the withholding tax code, as it is needed for entering transaction-related indicators when making postings.