Withholding Process

R12 Payables - Withholding Process

Firose K S firozekaramala@gmail.com

WITHHOLDING TAX
• Withholding tax is a government requirement for the payer of an item of income to withhold or deduct tax from the payment, and pay that tax to the government. In most jurisdictions withholding tax applies to employment income. Many jurisdictions also require withholding tax on payments of interest or dividends.

Prerequisite Setup
• In the supplier Tax details tab ‘Allow Withholding tax’ should be enabled in header level. • In the supplier Tax details tab ‘Allow Withholding tax’ should be enabled in site level. • In the Payable option ‘use withholding tax’ should be enabled. • Creation of withholding tax codes

Withholding Process
• In the invoice distribution level we can add the withholding group. • After validating the invoice the withheld amount will take effect. • After validated the invoice withholding invoice will be generate.

Note:
• Here in BILT unit this withholding tax they are using for the withholding amount from the contractors and the transporters as part of security deposit.

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