In continuation to my last document Krishi kalyan Cess configuration ,I want to share configuration of KKC in withholding tax for partial service tax under reverse charge mechanism.
1. Create a w.h.tax type at invoice posting
2. Create a w.h.tax type at payment posting
3. Create w.h.tax code for the above 2 keys.
4. Define formulas for calculating w.h.tax for the above tax types.
5. Assign the tax type to co.code
6. Then after create the below GL accounts in FS00
1. KKC Payable
2. KKC Receivable
3. KKC expense (If the company is not eligible for CENVAT credit)
7. Assign the payable GL account for the w.h.tax type & tax code in OBWW
8.Assign the receivable or expense GL account for the w.h.tax type & code in OBWO
9. Assign the above created codes in the vendor master
10. After done the above configuration, post the invoice.
Please share your valuable feed back on it.
Thanks & Regards,
Mukthar Ali N