A new withholding tax key and type were defined for chartering services called CHAR. The withholding tax code CH was created and assigned to company codes to be available for customer master data. General ledger accounts were assigned to the withholding tax type CH using transaction OBWW so that withholding tax could be posted for chartering service payments. The withholding tax type and code CH were then assigned to customer masters.

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Customer Withholding Tax
Configuration.
A new withholding tax key is defined in the system for
chartering services i.e. CHAR
A withholding tax type is made for payment posting using
the path mentioned below:

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The characteristics of the withholding tax type CH are given below:

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A withholding tax code CH is made as under:
The withholding tax type created above is then assigned to
the company code:

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The details are as follows:
The highlighted portion above makes it available for use in customer master data.
The GL accounts are then assigned to the withholding tax
type CH from transaction OBWW.

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The rules for posting are as follows:
The posting keys are:
6) We then assign the withholding tax type and code to the
customer master as shown below:

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