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.

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)

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

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.

Answer / mina

Both are basically the same except that TDS in India goes
by the name Withholding Extended Tax.

Answer / srivani

Please refer to the following link:
http://help.sap.com/erp2005_ehp_03/helpdata/EN/bf/60514db427
c44e9241a16bb9f3828b/frameset.htm

Answer / chandu pokala

With holding tax is at country level and extened WTH is
comp code level we can do TDS in SAP

Am a Sap Fi trainee learning the process, i came across a topic Foreign currency valuation. my doubt is whether foreign currency valuation and foreign currency revaluation is one and the same?

0 Answers  

What is a Cross company code.Please explain in brief.

5 Answers  

can we maintain two fiscal year variants for one company code

4 Answers  

What is the use of creating number ranges in co?

2 Answers   IBM,

Why do we perform cost center planning? : cost center accounting

0 Answers  

What is fast entry? : fi- general ledger accounting

0 Answers  

Describe the dunning process? : fi- accounts receivable

0 Answers  

where we assign juridicial codes while we configeration of WHT?

0 Answers  

HOW MANY TICKETS U HAVE RECEIVED PER MONTH AND HOW MANY U HAVE SOLVED?

1 Answers   Genpact,

hi everybody How to transfer the amounts from one profit center to another profit center document wise . Through 9ke0 we can do line item wise but i want to transfer the amount particular document wise. syam

1 Answers  

what is the process of app for customer?

3 Answers   IBM,

What are the configurations for bank statement processing? : fi- general ledger

0 Answers