Step 1: Define Payable options setup
(N) – Oracle Payables > Setup > Options > Define Payable Options > Withholding Tab
Set create withholding while Payment:
Note: Allow Manual Withholding helps to override the Tax Group at the transactions
Step 2: Define Calendar
(N) – Oracle Payables > Setup > Calendar > Special Calendar
Type must be “With Holding”
Step 3: Define Tax Code
(N) – Oracle Payables > Setup > Tax > Withholding > Codes
- Associate your tax Authority for whom TDS need to be deducted.
- Provide the accounting code.
- Map the Calendar.
- One can create the Code as Tax Group automatically using “Create Withholding Tax Group.
Step 4: Define Tax Group
(N) – Oracle Payables > Setup > Tax > Withholding > Groups
One can associate the created tax code as Tax group
Step 5: Enable Supplier Site for Withholding Tax Applicability
- Check the Allow Withholding Tax
- Provide the Default tax group.
Step 6: Transactions
Consider the below example:
Invoice Amount => 1200
Line Amount =>1000
GST=>200
GST TDS =>20
Income Tax TDS => 200
Payment => 1200 -200-20=> (980)
GST On TDS Deducted is 20 On payment.
Create AP invoices for the supplier and Site. While Creating the Item line you can see the
Withholding on Payment Tax group being defaulted
If GST tax need to apply ,Apply GST taxes using Tools > India Tax Details
If TDS under income tax is also applicable then that can also be applied using Tools > TDS Tax
Details:
Validate the Invoice
Normal TDS Got Generated
Do Pay in full
Post Payment in Invoice Withholding Line will be inserted
Invoice in favor of GST Tax Authority will be generated as shown below
