what is withholding tax? when we use withholding tax?
what are the procedure in steps for calculating tds plz
tell me about all........
- 12 Answers
- 100550 Views
- IBM, Patni, TCS, I also Faced
- E-Mail Answers
Answer Posted / srinath shenoy
Withholding tax terminology is popularly used for the word TDS from the amount payable to non-resident companies. Like we deduct TDS in India for various kind of professions, salary, rent, commission, interest etc, we deduct withholding tax from the same kind of charges charged by non residents and pay the deducted withholding tax to the government.
The various rates of WHT for the different kind of charges are as below:
Dividends- 10%
Interest- 20%
Royalties- 20%
Technical Services- 20%
Any other Services :
for Individuals, 30% of net income
for Companies/Corporates - 40% of net income
These rates are applicable for those who are not under DTAA agreements.
India has different rates than above for the countries who are under DTAA agreements. These can be availed in Income tax india website or from any income tax ready reckoner books.
Procedure calculating the TDS :
a.while making the payment, deduct TDS as per the rates applicable.
b. book the same in your accounts and a liability will be created in your books of accounts.
c.Pay the deducted TDS to the government within 7th of every following month of which TDS is deducted.
d.Get the challan numbers, and file the quarterly eTDS returns within 20 days after completion of related quarter.
| Is This Answer Correct ? | 21 Yes | 5 No |
Post New Answer View All Answers
What is fi/co consolidation and give the steps to customization for fi consolidation?
What is integrated planning in co-om-cca? : co- cost center accounting
How accrual calculation can be performed in the system? : cost center accounting
What is the difference between profitability analysis and profit center accounting?
What is the number of configured currencies per company code?
How do you configure the assignment of variances from product costing to copa module? : co-pa
What is the difference between olap and data mining?
Explain the fiscal year dependent of the particular year in the sap software?
Explain asset transfer in sap : fi- asset accounting
What is Plan Depreciation(AFAB)
How we do the Testing? Normally how many types of testing process we use in SAP?
What are the other modules to which 'financial accounting' is integrated?
What is financial accounting sap ?
What is the meaning of Retained earning account ? why it is mandatory area in SAP FI
What is a special period?
