What is Withholding Tax and Extended with holding TAx?
Explain
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Answer / srivani
Withholding tax: Tax that is charged at the beginning of
the payment flow in some countries. Usually, the party that
is subject to tax does not pay the withholding tax over to
the tax authorities himself.
When a customer that is authorized to deduct withholding
tax pays invoices from a vendor subject to withholding tax,
the customer reduces the payment amount by the withholding
tax proportion. The customer then pays the tax withheld
directly to the appropriate tax authorities
Extended with holding tax: With extended withholding tax,
you can process withholding tax from both the vendor and
customer view.
In Accounts Payable, the vendor is the person subject to
tax, and the company code is obligated to deduct
withholding tax and pay this over to the tax authorities on
the vendor’s behalf. In Accounts Receivable, the company
code itself is subject to tax, and the customers that do
business with this company code deduct withholding tax and
pay this over to the tax authorities on the company code’s
behalf. In both cases, the business partner of the
person/entity subject to tax deducts the tax and pays it
over to the tax authorities.
Is This Answer Correct ? | 10 Yes | 4 No |
Answer / sudhakar
Classic Withholding Tax vs Extended Withholding Tax
• CWT : only for payment.
• EWT : payment and invoices
• CWT : Only for vendors
• EWT : for vendors and customers also.
• CWT : only one tax component (like TDS )
• EWT : N no of tax component (like TDS + Surcharge + Ecess + H Ecess)
Is This Answer Correct ? | 3 Yes | 0 No |
Answer / aninda manna
plz refer to
http://help.sap.com/saphelp_46c/helpdata/en/e5/078d0b4acd11d
182b90000e829fbfe/frameset.htm
you'll also find the difference between the two clearly
illustrated.
regards
aninda
Is This Answer Correct ? | 4 Yes | 3 No |
Answer / jiten
Both are same basically ,withholding tax is deducted only
at the time of payment.Extended w/t is deducted at the time
of booking of invoice or booking of document which ever is
earlier is applicable. if wrong plz correct me.
Is This Answer Correct ? | 3 Yes | 5 No |
Answer / mina
Both are basically the same except that TDS in India goes
by the name Withholding Extended Tax.
Is This Answer Correct ? | 4 Yes | 10 No |
Answer / srivani
Please refer to the following link:
http://help.sap.com/erp2005_ehp_03/helpdata/EN/bf/60514db427
c44e9241a16bb9f3828b/frameset.htm
Is This Answer Correct ? | 0 Yes | 8 No |
Answer / chandu pokala
With holding tax is at country level and extened WTH is
comp code level we can do TDS in SAP
Is This Answer Correct ? | 0 Yes | 8 No |
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