3328964 - Withholding Tax Relevant Error Appears While Trying to Create New Supplier Invoice Without Purchase Order

Error appears while trying to create new supplier invoice. 
Error - Item 1: Determination of withholding tax code failed for country India tax event Withholding Tax

SAP Business ByDesign

1. Go to Supplier Invoicing work center
2. Go to Common Tasks and select New Invoice without Purchase order
3. Select the relevant Supplier and Company
4. Enter the relevant product
5. Select Check button
6. Error appears

Withholding tax is due if the following conditions are all true:

• The buyer (buying company) is obligated by law to withhold 
• The supplier is subject to withholding
• The product is relevant for withholding

As a consequence, the following master data objects carry attributes that are specific to withholding tax:

• Company Tax Arrangement
• Supplier
• Product

In the Service master, Withholding Tax Classification details is not defined and hence the error message occurs.

You have to maintain the Withholding Tax Classification details in the Service master. Later system will calculate the withholding tax code properly in the new invoice document.

Determination of withholding tax code failed for country India tax event Withholding Tax; Determination of withholding tax code failed , KBA , SRD-SRM-SI , Supplier Invoicing , Problem

SAP Business ByDesign 2302 ; SAP Business ByDesign 2305 ; SAP Business ByDesign 2308