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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?

created in invoice
https://docs.erpnext.com/docs/v13/user/manual/en/accounts/tax-withholding-category

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