Answer Posted / hemanthkumar

Withholding tax means holding the tax portion of customer
and vendor which need to pay to tax authority, it will be
paid to tax authority on behalf of customer or vendor.
Withholding Tax(VAT) is used for both for the Vendor and
the Customer.
It is the taxable portion deducted by company to pay for
Taxation authority. To enable that option, SAP as designed
withholding tax concept.

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