Withholding Tax At Payment

Thanks ERPNext team for adding the tax withholding option at payment entry. Kudos!!!

However, it doesn’t seem to be working for me. when I check the apply withholding tax; it doesn’t apply the withholding tax rate nor pass necessary accounting entry.

Is something required to make this working?

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created in invoice

yes. but the idea was to add it separately at payment. Cause in most cases, tax is withheld at time of payment and not at time of recording payment; this shows incorrect payable vendor balance. there were earlier posts on this and a github issue as well. After that, this option recently appeared in the ERPNext to select withholding tax deduction at time of payment.

On which version? Any screenshot?

I thought you were saying ERPNext is created at payment entry, the doc I mentioned says otherwise. Can you please show us how to use withholding tax at payment entry in ERPNext? I am curious myself…

Version is 13.12.1

here is a screenshot:

yep no GL transaction in payment when submitted…
but as the doc said, you can add withholding tax there, then it will create a journal. Of course none of these are our requirement.

hmmmm … so i mentioned the feature added isn’t actually working. I hope its sorted out soon! it would be a really helpful addition and solve practical issues.

you can watch the workaround
ERPNext series - 25 Withholding tax (Pay for services) - YouTube