7/28/2019 Difference Between Withholding Taxes and Extended
Taxes
2/2
are represented by the withholding tax code. You can define any
number of withholding tax codes fo
a given withholding tax type.
If a particular transaction requires more than one kind of
withholding tax, this is covered in the SAPSystem by defining more
than one withholding tax type.
When entering a line item, you can enter withholding tax data
for each of these withholding tax types
SAP FI Tips by : Rahul Gupta
How To Configure Withholding Tax?
Steps for extended withholding tax :
1. Check withholding tax countries2. Define Ex. Withholding tax
types for invoice postings
3. Define Ex. Withholding tax codes
4. Formula for Ex. Withholding tax calculation5. Assign Ex.
Withholding tax types to Company code
6. Activate Ex. Withholding tax
8. Create a G/L a/C for Ex. Withholding tax
9. Define A/C for Ex. Withholding tax (DBWW)10. Make changes in
Vendor master (XK02)
11. Maintain Company Code Settings:
Path: IMG -> Logistic -> General -> Taxes on goods
movement -> India -> Maintain company codesettings
12. Activate country version for specific fiscal year
position
Path: IMG -> FA -> -> FAGS -> Taxes on sales
purchases -> Basic Setting -> India -> Activate
country specific for fiscal year position
