Use Case: 2 AP Invoice Transaction Flow with AWT on Purchase of Goods

This section provides a detailed view of AP invoice transaction flow with Automatic Withholding Tax (AWT) on purchase of goods use case.

Purchase of Goods – Other than Oil

This table shows the invoice for purchase of goods other than oil:

SLAB AMOUNT RATE
1 Less than 20 Lakhs 3%
2 Greater than 20 Lakhs - Less than 1 Crore 4%
3 Greater than 1 Crore 5%

Use Case for Goods – Other than Oil

This table shows the usecase for goods other than oil:

# VENDOR INVOICE NO AMOUNT DETAILS / TDS % TDS DEDUCTED NET PAID
1 Advanced Corp 1st Invoice 18,00,000 3% 54,000 17,46,000
2 Advanced Corp 2nd Invoice 2,00,000 3% 6,000 1,94,000
3 Advanced Corp 3rd Invoice 2,000 WHT restricted to the Invoice Amount 2,000 -18,080
4 Total 20,02,000 4% 80,080
5 TDS Already Deducted (#1+2+3) 62,000
6 Balance TDS to be Deducted (#4-5) 18,080
7 Advanced Corp 4th Invoice 80,00,000 4,38,100 75,84,000
8 Total ######## 5% 5,00,100
9 TDS Already Deducted (#5) 62,000
10 Balance TDS to be Deducted (#8-9) 4,38,100

Create Invoices for Purchase of Goods Other than Oil

  • Invoice # BD-NON-OIL-1
  • Invoice # BD-NON-OIL-2
  • Invoice # BD-NON-OIL-3
  • Invoice # BD-NON-OIL-4

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
Withholding tax - 30000 5/27/20 5/27/20 6:01 AM Internal Revenue Server Prog US Tax 54,000.00 USD 54,000.00 USD
Withholding tax - 30000 5/27/20 5/27/20 6:05 AM Internal Revenue Server Prog US Tax 6,000.00 USD 6,000.00 USD
Withholding tax - 30000 5/27/20 5/27/20 6:07 AM Internal Revenue Server Prog US Tax 2,000.00 USD 2,000.00 USD
Withholding tax - 30000 5/27/20 5/27/20 6:09 AM Internal Revenue Server Prog US Tax 438,100.00 USD 438,100.00 USD
In the above table, Applied Prepayment is Not paid and Validation status is Not validated.