While creating New Withholding Tax Base Amount Entry for country India, you receive an Error message Country India is not relevant for this business transaction. Select a different company.
Reproducing the Issue
- Go to Tax Management Work center.
- Go to Manual Tax Entries View.
- Go to Withholding Tax Base Amount Entries.
- Click on New - Tax Entry.
- Enter the Company(Maintained for India) and press 'Enter' key
- The error message appears:Country India is not relevant for this business transaction. Select a different company.
Please note that this feature of Manual Tax entry for withholding tax is not applicable for country India.
Reason behind this is that manual tax entry allows only modification of tax base amount where the tax amount is 0. So, there is no posting of tax amount possible through this.
The current scenario can be handled through a manual Journal Entry voucher where by you can directly post the Withholding Tax to the respective TDS(Tax Deduction at Source) account. This however, will not be picked in the Withholding Tax challan return. It has to be paid separately and then adjusted against the return of that period.
This is intended system behavior. The same applies for companies in other localizations for which Manual Tax Entries for withholding tax is not supported.
Country India Is Not Relevant For This Business Transaction. Select a Different Company., , KBA , country india is not relevant , SRD-FIN-TAX , Tax Management , Product Enhancement