| # Withholding Tax The group tax codes of type withholding tax can be defaulted on the corresponding invoice entries if the Tax Deducted at Source functionality is implemented. The following data setup is required to default the tax code for the invoices: In the Invoice-to Business Partner (tccom4112s000) session, for a business partner, specify Business Partner Tax Classification. The Tax Classification must have the Withholding Income Taxes Allowed checkbox selected in the Tax Classifications (tctax0116m000) session. In the Business Partner Withholding Tax Data (tccom4127s000) session, select the applicable Legal Form for the business partner. If the business partner is not a resident of India, the Legal Form must be set to Corporate Body and the Non-resident checkbox must be selected. In the Registration Numbers by Business Partner (tctax4100m000) session, for the business partner, specify the PAN, Tax Category and the Vendor TDS Code. Note: If a business partner is providing more than one service, then two different TDS section codes are applicable. The correct registration number of the BP must be selected by the user. In the Thresholds (tctax9143m00l) specify a Threshold code for the tax category. In the Threshold Types (tctax9544m00l) session, for the threshold code: Set the Threshold Type to determine the level at which the tax must be levied. Specify the tax country and the tax code. create threshold types for a specified threshold code. The combination indicates that for a specified amount range and a threshold type, the tax code is defaulted on the invoice. In the Thresholds By Business Partner (tctax9146m00l) session, link the business partner(if LDC is applicable) and the threshold code to a tax category. Based on the business partner, registration sequence number, and amount specified on the invoice, the tax code defined for a Threshold code and the To Amount, From Amount in the Threshold Types (tctax9544m00l) session is defaulted on the invoice. |