WHT : Withholding Tax
Withholding tax is an amount withheld by the party making a payment to another (payee) and paid to the taxation authorities, depending on the nature of the product or service being paid for.
WHT is the amount withheld while making payment to a supplier/contractor/any payee. such amount withheld is paid to tax authorities on behalf of such supplier/contractor/payee.
WHT group defaults from supplier site. If required, the user can override the default and select a different WHT group.
Typical configuration for Withholding Tax in AP broadly consist of the following four steps
1)Enable withholding tax in payables options
2)create withholding tax code
3)creat withholding tax group
4)assign withholding tax group to supplier site
1)Enable withholding tax in payable options
• Payable Option: Withholding Tax Tab: Allow WHT in Payable Option window for the operating unit
To allow Automatic Withholding Tax for your invoices and expense reports, enable the Use Withholding Tax Payable option.
Navigation: Payable > Setup > Options > Payable > Withholding Tax tab
Enable the Use Withholding Tax Payable option.
Apply with holding tax will in 4 ways.you can select anyone of the above.
1)Never
2)at invoice validation time
3)at payment time
4)at invoice validation and payment time
2)create withholding tax code
• Define your Withholding Tax Authority as Supplier with Venfor Type as ‘Tax Authority’
Define withholding tax authority supplier. Define this supplier as a Standard Supplier with Supplier
Type as ‘Tax Authority’. WHT invoices are created against these suppliers.
Navigation: Payables > Supplier > Entry
3)creat withholding tax group
• Define WHT group
Define WHT codes with tax type as ‘Withholding Tax’ and enter the GL Accounts for the WHT accounting.
Navigation: Payables > Setup > Tax > Withholding > Codes
4)assign withholding tax group to supplier site
• Enable WHT on Supplier / Supplier Site for standard suppliers
You need to enable WHT on Supplier and Supplier site. Optionally you can also enter default WHT group for the supplier site.
Accept the default withholding tax group from the supplier site or select another from a list of values while raising the invoice.
Navigation: Payables > Supplier > Enter > Tax Details
Withholding tax is an amount withheld by the party making a payment to another (payee) and paid to the taxation authorities, depending on the nature of the product or service being paid for.
WHT is the amount withheld while making payment to a supplier/contractor/any payee. such amount withheld is paid to tax authorities on behalf of such supplier/contractor/payee.
WHT group defaults from supplier site. If required, the user can override the default and select a different WHT group.
Typical configuration for Withholding Tax in AP broadly consist of the following four steps
1)Enable withholding tax in payables options
2)create withholding tax code
3)creat withholding tax group
4)assign withholding tax group to supplier site
1)Enable withholding tax in payable options
• Payable Option: Withholding Tax Tab: Allow WHT in Payable Option window for the operating unit
To allow Automatic Withholding Tax for your invoices and expense reports, enable the Use Withholding Tax Payable option.
Navigation: Payable > Setup > Options > Payable > Withholding Tax tab
Enable the Use Withholding Tax Payable option.
Apply with holding tax will in 4 ways.you can select anyone of the above.
1)Never
2)at invoice validation time
3)at payment time
4)at invoice validation and payment time
2)create withholding tax code
• Define your Withholding Tax Authority as Supplier with Venfor Type as ‘Tax Authority’
Define withholding tax authority supplier. Define this supplier as a Standard Supplier with Supplier
Type as ‘Tax Authority’. WHT invoices are created against these suppliers.
Navigation: Payables > Supplier > Entry
3)creat withholding tax group
• Define WHT group
Define WHT codes with tax type as ‘Withholding Tax’ and enter the GL Accounts for the WHT accounting.
Navigation: Payables > Setup > Tax > Withholding > Codes
4)assign withholding tax group to supplier site
• Enable WHT on Supplier / Supplier Site for standard suppliers
You need to enable WHT on Supplier and Supplier site. Optionally you can also enter default WHT group for the supplier site.
Accept the default withholding tax group from the supplier site or select another from a list of values while raising the invoice.
Navigation: Payables > Supplier > Enter > Tax Details
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