Hi Forum,
Does anybody know how to set witholding tax in erp ln and when will witholding tax posted in general ledger. Thanks

Hi Indu,


We need to create a tax code which is of type with holding tax and create ledger account for the same and link the tax code to business patners.

With holding tax is nothing but your TDS part.

Regards

Vasu

Hi Vasu
Have you set your witholding tax, could you guide me how to set up besides making the tax code with type 'witholding tax'. Thanks in advance

Hi Indu,

Please find the attached screen shots and try whether it can be solved.

Thanks

Vasu

Hi Vasu

Does witholding tax do just like VAT. I mean how do you make relationship with Purchase Order or Sales Order. For example, if you want to purchase service then you make item cost which later on to be calculated with witholding tax. How does witholding tax works in ERP LN. Thank you in advance

Hi Indu,

I think with holding tax tax cannot be linked with PO or SO because withholding tax applies only at the time of payment so it should be Linked to
Business Partner.

You need create a group tax code to which it you need to link Withholding tax ex.192c and vat kind of tax with 0% to the group code and to need to link with the business partner tax classification.

Regards

Vasu

Hi Vasu
the with holding tax you said is conected with Business Partners. That setup is when the payment on service we get. But when we deliver the service and we give invoice to customer, how to setup service tax.

The case is like this, the company deliver service for the amount $1000 then when the company received payment from customer it only received $940. while usd $60 is the tax directly paid by customer to tax collection office. Do you have this kind of case?

Hi Vasu
I have manage to create tax code with tax type with holding tax and tax kind On Payment. However, do you have any idea why only VAT kind of tax that can be linked with AR (Account Receivable). Thank you in advance.