Use this window to define withholding tax codes for your company.
To open the window, choose
.Specify a code for the withholding tax. |
Select to indicate the withholding tax is inactive. Once the withholding tax is set as inactive, you cannot select it in any new or draft document. By default, the checkbox is not selected. |
Enter a description for the withholding tax code. |
Choose one of the following from the dropdown list:
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Enter the date from which a tax group rate (%) is effective. |
Enter the rate of tax to be calculated from the date defined in the Effective From field. |
Choose either Gross (includes VAT) or Net from the drop-down list to determine from which amount the withholding tax will be calculated. |
Specify the percentage of the base amount that is subject to withholding tax. The default value is 100%. |
Specify the official code to be reported in the withholding tax report. |
Choose the G/L account code to be recorded in journal entries relevant for this withholding tax code. |
Choose this button to open the Tax Definition - <XXX> window, in which you can define the Effective From date and the tax percentage for the selected withholding tax code. |
Specify the minimum taxable amount for the withholding tax to take effect. |
Choose the relevant rounding type from the drop-down menu:
Example The following explains the calculations when creating the payment for the invoice mentioned above, but according to commercial rounding: The invoice total is 11.6. Withholding tax = 11.6*18% = 2.088. This amount is rounded to 2. A value of 2 is posted for withholding tax while the bank account is credited for 9.6. End of the example. |
Specify the appropriate withholding tax type. |
Specify on what the tax is levied. |
Regards the withholding tax as a progressive tax. |
Select a section code from the drop down list. |
Specify a value of threshold for TDS. |
Specify the value of surcharge for TDS. |
Select the checkbox if the concession is applicable. |
Select a assessee code from the drop down list. |
In this field , you can assign an account for A/P TDS. To do so, in the field, press TAB and choose an account in the List of G/L Accounts window. |
In this field , you can assign an account for A/P Surcharge. To do so, in the field, press TAB and choose an account in the List of G/L Accounts window. |
In this field , you can assign an account for A/P Cess. To do so, in the field, press TAB and choose an account in the List of G/L Accounts window. |
In this field , you can assign an account for A/P HSC. To do so, in the field, press TAB and choose an account in the List of G/L Accounts window. |
In this field , you can assign an account for A/R TDS. To do so, in the field, press TAB and choose an account in the List of G/L Accounts window. |
In this field , you can assign an account for A/R surcharge. To do so, in the field, press TAB and choose an account in the List of G/L Accounts window. |
In this field , you can assign an account for A/R Cess. To do so, in the field, press TAB and choose an account in the List of G/L Accounts window. |
In this field , you can assign an account for A/R HSC. To do so, in the field, press TAB and choose an account in the List of G/L Accounts window. |
From the drop down list, select a location for which the category code was created. |
From the drop down list, select a return type for the tax category. |
Choose one of the following:
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Choose one of the following:
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