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Vendor Withholding Tax Clearing

Former Member
0 Kudos

Dear All,

I have an issue with Withholding Tax on Vendor Down payment making and Invoice....

While making Vendor downpayment Rs.10000/-, the entry is,

Vendor A/c Dr-10000

To Bank A/c-9800

To TDS -200

While doing invoice, the entry is

Expense A/c Dr-10000

To TDS A/c-200

To Vendor-9800

Then, while doing F-54, Vendor downpayment clearing,

Vendor A/c Dr-10000

To Vendor A/c -10000

the balance Rs.200 for Withholding tax value is not clearing.....

suggest me how to clear withholding tax value...

Thanks & Regards,

Mohan.

Accepted Solutions (0)

Answers (4)

Answers (4)

Former Member
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thanks to all

former_member2342
Active Contributor
0 Kudos

Hi Mohan

As per my understanding while doing MIRO the user should have removed the payment withholding tax code and done MIRO else the same problem comes. Only alternative would be to reverse the MIRO and do fresh MIRO removing the payment withholding tax code.

Aravind

former_member213733
Active Contributor
0 Kudos

Hello all ,

As i found this question unanswered so thouhgt of giving my inputs on the same .

The problem faced here may be due to 2 things :

1. in customizing for tax type for payment , the tick for central invoice prop. may not be done .

2 . while posting the invoice the user might not have deselected the tax code for payment posting in FB60 etc. , due to which also such sort of problem occur .

If proper care is taken for these 2 things the aforesaid requirement would be fulfilled .

Cheers ,

Dewang

former_member266406
Active Participant
0 Kudos

dear,

Asper rule tax is attracted either payment or invoice which ever happens earlier.

Here the down payment is made for the respective invoice why Tds has to be deducted twice.

So that it does not tally.

So the correspoding invoice has to be reversed and repost the new invoice without tds.

regards

prasad

Former Member
0 Kudos

Hi Prasad,

Here they are following the TDS process in two ways of while down payment posting and invoice posting.

When we clear vendor down payment in F-54, it is showing the balance in Vendor Line item.

While making Vendor downpayment Rs.10000/-, the entry is,

Vendor A/c Dr-10000

To Bank A/c-9800

To TDS -200

While doing invoice, the entry is

Expense A/c Dr-10000

To TDS A/c-200

To Vendor-9800

Then, while doing F-54, Vendor downpayment clearing,

Vendor A/c Dr-10000

To Vendor A/c -10000

The balance 200 is showing in Open item.

I couldn't to clear in F-44.

Give the solution to solve the issue...

Thanks and Regards,

Mohan.

Former Member
0 Kudos

Dear Mohan,

What you are doing is correct. Please not that when you post Down payment TDS amount is credited. When you post Invoice also TDS amount will be credited. But when you clear or link the down payment with the invoice in F-54, TDS amount will be debited.

Please check in J1INMIS. you will find 2 credit line item and 1 debit item for the same transaction. That means your TDS is getting nullified.

Hope its clear to you.

Rama Murali

Former Member
0 Kudos

Dear,

Please ensure following...

1. Please check if Central Inv. Prop. is selected in payment withholding tax type. If this is not the case then select it before you do F-54.

2. Check both withholding tax codes mapped in invoice and payment pertains to same section.

Regards,

Chintan Joshi.

Former Member
0 Kudos

Dear Chintan,

The withholding Tax type for Payment, the Central Inv. Prop. is active.

Checked withholding tax code also. The settings are in properly.

Then the withholding tax is not clearing...

Suggest me how to clear withholding tax.

regards,

Mohan.

Former Member
0 Kudos

Dear,

Then this must be because your invoice contains the payment tax code in the invoice.

Go to invoice in FB03 and click on Withholding tax info in the vendor line item. There must be payment withholding tax type. If so then please reverse the invoice and repost it, when you repost the invoice please remove the payment tax code from the pop up. Then do the clearing in F-54

Regards,

Chintan Joshi

Former Member
0 Kudos

Hi Chintan,

But the requirement is the TDS value is coming in while doing Vendor Downpayment and making Invoice.....

When the clearing of downpayment in F-54, the invocie doc. no. Value is coming Rs.9800 and vendor downpayment doc. no. value is coming Rs.10000.

So not able to do clearing of Rs,200 of TDS value.....

suggest me how to solve......

Regards,

Mohan.

Edited by: Mohan on Jan 8, 2010 10:45 AM