WHT Transactions & Reporting
A WHT Transaction is the audit record of a single withheld amount on the purchase side — one row per rate that fired, per bill line. It’s the withholding equivalent of a Source Line Tax row: created automatically by the engine, it’s what your TDS/IRRF filings and remittances are built from.
Access you'll need. These are system-generated audit records. Any REDA Financials AI permission set can view them (limited to the records your role can see); none are created or edited by hand.
A concrete example: Meridian Properties India Pvt Ltd posts a ₹1,00,000 audit-and-advisory bill from Sharma & Associates LLP. The professional-fees TDS rule fires at 10%, so one WHT Transaction appears — ₹10,000, pointing at the 10% rate and the fee line. Come filing time, that row is the entry in Meridian’s TDS return and the basis of the certificate Sharma & Associates receives to claim their credit.
What each record captures
| Field | What it records |
|---|---|
| Transaction Number | Auto-assigned name — you never set it |
| Amount | The withheld amount for this rate on this line — always in the bill’s own currency |
| WHT Rate | The exact rate record that fired (and through it, the rule, section, and rate %) |
| Purchase Invoice Line | The bill line it came from |
| Purchase Invoice | The bill — filled in automatically from the line, for one-hop reporting |
From a WHT Transaction you can reach everything you need for a filing: the section (194C, IRRF…), the vendor, the payment, the rate, and the amount. Note these are purchase-side records only — sales invoices and journals never carry them, and sales-side withholding is captured through cash receipts instead.
Why “one row per rate” matters
A rule can carry several Always rates, and every one of them fires on the same line at once — the pattern for regimes where a single payment attracts a bundle of contributions (Brazil’s PIS / COFINS / CSLL is the classic case). Configure a rule that way and one bill line produces one WHT Transaction per contribution, each pointing at its own rate. The bill shows the combined withholding; the transaction rows keep the components separately reportable, which is exactly how you must file them. India is the simple case by comparison: one TDS rate fires, one row appears.
Engine-managed, created at posting
Like the tax-side audit rows, WHT Transactions are created by the engine when the bill posts — you don’t add them by hand, and while the bill is a draft the withholding exists only as an on-screen preview. At posting, they roll up to each bill line’s Withholding Tax Amount and to the bill’s total withholding, which is what makes the balance due the net figure.
The lifecycle mirrors the bill’s. Unpost the bill and its WHT Transactions are deleted and the line amounts zeroed, together with the tax records and accounting entries; post again and everything is recalculated against the rules in force. So a correction is never an edit to a WHT Transaction — it’s a change to the bill (the rule, the vendor’s classification, the line) followed by a re-post.
Reporting & remittance
The WHT Transactions are the source for the two things you owe the authority:
| Need | How the records support it |
|---|---|
| Periodic returns (e.g. TDS returns) | Group the transactions by section and period to total what was withheld, by vendor |
| Remittance | The total withheld in a period is what you pay the authority — clearing the WHT Payable |
| Vendor certificates | Each vendor’s withheld amounts back the certificate you issue them |
The remittance itself is a payment on your normal filing schedule — debit WHT Payable, credit the bank — and the period’s WHT Transactions are the working papers behind that single figure. In India that cycle is typically monthly, with quarterly returns and a certificate (such as Form 16A, carrying the rule’s Section Code) to each vendor; other jurisdictions differ in cadence but not in shape.
Where to see them
WHT Transactions appear on the posted bill’s Withholding Tax view — one row per withheld amount, each traceable to the exact rate and line — and feed the bill’s withholding totals. For period work, report across them grouped by section, vendor, and period — that view is your return. (Sales-side withholding is recorded differently, via cash receipts — see Sales-Side WHT.)
Where to go next
- Purchase-Side WHT (TDS on Bills) — the process that creates these records.
- WHT Rules & Rates — the rules behind each transaction.
- Understanding Withholding Tax — the concepts these records capture.
- WHT Exemptions — why some payments have no record.
Frequently asked questions
No — they’re purchase-side records (tax you withhold). Sales-side withholding (where the customer withholds from paying you) is captured through “WHT Received” cash receipts instead.
They’re engine-managed — to change a withheld amount, unpost the bill, fix what drove the calculation (the rule, the vendor’s classification, the line), and post again; the engine recreates the records. This keeps the withholding total, the net payable, and the ledger aligned.
The bill’s currency, always — even when the rule’s threshold was denominated in a different currency for the comparison. What you withheld from a dollar bill is a dollar amount; the conversion only ever decided whether the rule applied.
No. Journals can carry sales/purchase tax (see Tax Calculation), but withholding runs on purchase invoices only. If you must record withholding outside a bill, it’s a manual journal against WHT Payable — without an engine audit row, so prefer the bill flow.
Report across the WHT Transactions grouped by section and period (and vendor). The totals are what you file and remit; each row links back to its bill and rate for verification.
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