How can we configure withholding tax in our system based on both lump sum and overall limits? — Cloud Customer Connect
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How can we configure withholding tax in our system based on both lump sum and overall limits?

in Tax & Global

Summary:

To elaborate, the lumpsum limit is set at ₹30,000, and the overall limit is ₹100,000. We are raising monthly invoices of ₹20,000 from the same supplier, starting from April. Since the lumpsum limit is not exceeded until August, no withholding tax is deducted during this period. However, in September, the cumulative invoice amount reaches ₹120,000, which exceeds the overall limit. As per our requirement, once this threshold is crossed, a 10% withholding tax (₹12,000) should be calculated and deducted retroactively on the entire cumulative amount of ₹120,000. Accordingly, a withholding tax invoice is automatically generated in September.


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