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Tax Configuration (Withholding TDS) for GSTIN

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Tax Configuration (Withholding TDS) for GSTIN
Stechies

Withholding tax configuration for GST

Steps to create official withholding tax keys

  • User clicks on Financial Accounting
  • Financial accounting global settings is displayed.
  • Upon clicking on Withholding Tax.
  • Select Extended withholding tax
  • Basic settings is visible
  • Define Withholding Tax keys will be visible.

The user will be able to create new entries with the below name space, specifically for official withholding tax keys for GST.

Steps to create withholding tax type for Invoice Postings

  • Financial Accounting page is visible.
  • Financial accounting global settings is visible.
  • Withholding Tax is displayed
  • User select Extended withholding tax
  • Calculation is visible.
  • Withholding tax type is displayed.
  • Define withholding tax type for invoice posting is visible
  • User enter country key as IN is

Create withholding tax type with the settings as shown in the screenshots below.

Similarly Create Withholding tax type for CGST, IGST, UGST and Comp. Cess GST.

Steps to create withholding tax type for Payment postings

  • Financial Accounting is displayed.
  • Financial accounting global settings is visible.
  • Withholding Tax is displayed.
  • Extended withholding tax will be visible.
  • Calculation is visible.
  • Withholding Tax Type will be displayed.
  • Define Withholding Tax Type for Payment Posting.

Create withholding tax type with the settings as shown in the screenshots below.

Similarly for SGST, CGST, IGST and UGST, Withholding tax type is created.

Steps to create withholding tax code

  • Financial Accounting will be displayed.
  • Financial accounting global settings is visible to the user.
  • Withholding Tax will be displayed.
  • Extended withholding tax is visible.
  • Calculation can be seen.
  • Withholding tax codes is displayed.
  • Define withholding tax codes can be seen.
  • Enter country key as IN.

Similarly GST tax types (CC, IG, SG and UG) is created.

Note: Maintain the With/tax rate as per business requirement.

Steps to assign the withholding tax type to the company code

  • Financial Accounting will be displayed.
  • Financial accounting global settings can be seen.
  • Withholding Tax is displayed.
  • Extended withholding tax can be seen.
  • Company code is visible
  • Assign withholding tax types to company codes.

Likewise, assign other tax code (CC, IG, SG and UG) to company code.

Steps to maintain G/L accounts for Withholding tax offsetting entry

  • Financial Accounting is visible.
  • Financial accounting global settings is displayed.
  • Withholding tax -can be seen with extended withholding tax
  • Posting can be seen.
  • Accounts for Withholding Tax-will be visible along with Define accounts for withholding tax offsetting entry.

Note: For G/L account and recon. accounts, field status should have WHT enabled.


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