Create new Withholding Tax for Vendors and Customers

[Khan]

Withholding Tax Type

If the WHT type is going to be applied at the time of Customer Invoicing goto this path:

IMG → Financial Accounting (New) → Financial Accounting Global Settings (New)→ Withholding Tax →Extended Withholding Tax → Calculation →Withholding Tax TypeàDefine Withholding Tax Type for Invoice Posting

For WHT at the time of payment goto this path: IMG → Financial Accounting (New) → Financial Accounting Global Settings (New)→ Withholding Tax →Extended Withholding Tax → Calculation →Withholding Tax TypeàDefine Withholding Tax Type for Payment Posting

Withholding tax code

goth this path:  IMG → Financial Accounting (New) → Financial Accounting Global Settings (New)→ Withholding Tax →Extended Withholding Tax → Calculation →Withholding Tax Codeà Define Withholding Tax Codes

Click: Copy as <button> & make the required changes & save the record

On save transport will be triggered

Customer Withholding tax Configuration

SPRO à Financial Accounting à Financial Accounting Global Settings à Withholding Tax à Extended Withholding Tax à Company Code à Assign Withholding Tax Types to Company Codes

Self-Withhldg Agent check box must be checked & saved

Demonstration of Customer WHT on Tcode: BP

Apply the WHT & save BP

Now goto T-code: FB70