Equalisation Levy @ 6%

[Former Member]

Hi,

Everybody will be knowing Equalisation Levy @ 6% by Budget 2016 in India. Is there any configuration available to satisfy this requirement ?

[Former Member]

Dear Muhammed,

You can create this Equalization Levy like as a With holding tax. Recently I have done this for one of my client and it is working fine.

Regards

Siva

[Former Member]

How we can treat and configure witholding tax code and type in sap for this purpose.

As per my knowledge,

This tax is levied at the rate of 6% for any payment that exceeds Rs. 1,00,000 a year from an Indian company to a non-resident for providing specified service

So, do we have to use accumulation type / formula ?

Could you please explain how you have treated ?