Use case 1: AP Invoice Transaction Flow with Automatic Withholding Tax Defaulting
This section provides a detailed view of AP invoice transaction flow with Automatic Withholding Tax (AWT) defaulting use case.
Invoice for Purchase of Service – from a Motor Garage
This table shows the invoice for purchase of service from a motor garage.
| Slab | Amount | Motor Garage and Workshop | Transport or Car Rent | Services - Other |
|---|---|---|---|---|
| 1 | Up to 25 Lakhs | 6% | 3% | 10% |
| 2 | Above 25 Lakhs | 8% | 4% | 12% |
Note: In the above table, motor garage and workshop withholding
tax rate is defaulted.
Use Case for Motor Garage and Workshop
This table shows the invoice for purchase of service from a motor garage.| # | VENDOR | INVOICE NO | AMOUNT | DETAILS / TDS % | TDS DEDUCTED | NET PAID |
|---|---|---|---|---|---|---|
| 1 | Amazon Progress | 1st Invoice | 2,000,000 | 6% | 120,000 | 1,880,000 |
| 2 | Amazon Progress | 2nd Invoice | 500,000 | 6% | 30,000 | 470,000 |
| 3 | Amazon Progress | 3rd Invoice | 1,000 | WHT amount restricted to Inv Amount | 1,000 | -49,080 |
| Total | 2,501,000 | 8% | 200,080 | |||
| TDS Already Deducted (# 1+2+3) | 151,000 | |||||
| Balance TDS to be De-ducted (# 4 - 5) | 49,080 | |||||
| 7 | Amazon Progress | 4th Invoice | 500,000 | 8% | 40,000 | 410,920 |
|
Total WHT deducted in 4th Invoice (# 6+7) |
89,080
|
Invoice # BD-NC-GAR-4
This table displays the amounts deducted for the invoice BD-NC-GAR-4:
| Line | Rate Name | Rate | Amount | Calculation Point | Regime | Tax Name | Tax Jurisdiction |
|---|---|---|---|---|---|---|---|
| 2 | 1099-BD-SV-MO-GARAG… | 17.816 | -89080.00 | Invoice | WHT-Progress US Busine… | 1099-BD-SV-MO-GARAGE | 1099-BD-SVC-MO-GARAGE-JURI |
Withholding Tax Invoices Generated on Tax Authority (IRS)
This table shows the withholding tax invoices generated on tax authority.
| Invoice Number | Invoice Date | Creation Date | Supplier or Party | Supplier Site | Unpaid Amount | Invoice Amount | Applied Prepayments |
|---|---|---|---|---|---|---|---|
| Withholding tax - 30000... | 5/27/20 | 5/27/20 5:47 AM | Internal Revenue Server | Prog US Tax | 120,000.00 USD | 120,000.00 USD | 0.00 USD |
| Withholding tax - 30000... | 5/27/20 | 5/27/20 5:50 AM | Internal Revenue Server | Prog US Tax | 30,000.00 USD | 30,000.00 USD | 0.00 USD |
| Withholding tax - 30000... | 5/27/20 | 5/27/20 5:53 AM | Internal Revenue Server | Prog US Tax | 1,000.00 USD | 1,000.00 USD | 0.00 USD |
| Withholding tax - 30000... | 5/27/20 | 5/27/20 5:57 AM | Internal Revenue Server | Prog US Tax | 89080.00 USD | 89080.00 USD | 0.00 USD |
In the above table, Invoice Type is Withholding tax type and Validation status is Not validated.