{"id":10523,"date":"2017-07-05T09:36:24","date_gmt":"2017-07-05T09:36:24","guid":{"rendered":"http:\/\/www.greytrix.com\/blogs\/sagex3\/?p=10523"},"modified":"2024-11-25T10:58:08","modified_gmt":"2024-11-25T10:58:08","slug":"withholding-tax","status":"publish","type":"post","link":"https:\/\/www.greytrix.com\/blogs\/sagex3\/2017\/07\/05\/withholding-tax\/","title":{"rendered":"Withholding Tax in Sage X3"},"content":{"rendered":"

Withholding Tax<\/strong> is also called as retention tax or TDS<\/strong>. Its requirement of Government to deduct or withhold a particular percentage from paying to the vendor and pay such amount to the Government on behalf of the company. It\u2019s a kind of Indirect Tax. Withholding Tax (WHT)<\/strong> is tax withheld by a company when making a payment to a vendor, in which the full amount owed to that vendor is reduced by the tax withheld.<\/p>\n

Withholding Tax can be deducted at two points of time. It can be either at the time of invoice or at the time of payment. So for this Withholding tax types are to be created one for invoice and second for payment.<\/p>\n

Check<\/strong><\/em>– Features and Benefits of Sage X3 for East African enterprises<\/a><\/p>\n

Define Withholding Tax Type for Payment Posting<\/span><\/strong><\/p>\n

Withholding tax type is assigned for the payment purpose and the same will not get triggered at the time of Invoice Posting. The withholding information is to be provided while posting for such document for Withholding Tax Payment<\/p>\n

To successfully bring this functionality in Sage X3 follow steps.<\/strong><\/p>\n

Navigate to All>>Parameters>>Organizational Structure>>Companies>>Accounting Tab<\/p>\n

Retained checkbox should be checked.<\/p>\n

\"Define

Define Withholding Tax Type<\/p><\/div>\n

Below parameters should be set yes in Parameter value<\/p>\n

Navigate to All>>Parameters>>General parameters>>LOC<\/p>\n