Withholding tax percentage to change if the invoice amount crosses Rs.5 crores

[Ramabhadran]

Dear estemeed members,

A requirement of my client is that if the invoice amount crosses Rs.50,000,000, the withholding tax should be calculated at 2%. If the amount is less than Rs.50,000,000, then the withholding tax should be calculated @ 0.25%. Currently, the system is capturing only @ 0.25% irrespective of the threshhold limit of Rs.50,000,000.

I have tried maintaining an exmption amount of Rs.50,000,000 and percentage in the vendor master. It is not working. Or maybe I am doing it wrong. Please find attached the screenshot. I4 tax code is configured at 2%. I4 should capture 0.25% if amount is below Rs.50,000,000. Currently it is capturing @0.25%.

How can this be achieved using a single tax code? Please advise and guide with the steps. Greatly appreciate all the help!

[sanilbhandari]

Hi @Ramabhadran 

You could look at the With Holding Tax Code set up with formula

The FAQ for with holding tax should also be helpful

Thanks & Best Regards

Sanil Bhandari

[Ramabhadran]

Dear Sanil,

Thank you for your reply.

Here is the extract from help.sap.com

Withholding Tax code for invoice

Calculation of withholding tax according to formula is not supported for TAN Based Exemption.

So this should always be unchecked.

Please refer KBA 2423402 which states the same.

Regards, Ramabhadran.

[Ramabhadran]

Any further suggestions please?

[Ramabhadran]

Dear Sanil, Could you kindly guide me as to hot to maintain the formula? Thank you!