Symptom
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
Environment
SAP Business ByDesign
Reproducing the Issue
- Go to Supplier Invoicing work center
- Go to Common Tasks and select New Invoice without Purchase order
- Select the relevant Supplier and Company
- Enter the relevant product
- Select Check button
- Error appears
Cause
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.
Resolution
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.
Keywords
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 Knowledge Base Article - Public