In house Cash -- Withholding Tax Calculation and Payment

Folks,

I have a requirement to configure withholding tax on the interest calculated (and periodically paid) by IHC to subsidiaries on current account balances.

1. Can anyone explain the standard process and configuration ?

2. I read somewhere about activating Capital Yield Tax (CYT) system. Is this used for withholding tax calculation? And is this part of ECC 6.0 pack 6?

http://help.sap.com/saphelp_cytm70/helpdata/en/4c/abf3618bcf0780e10000000a42189b/content.htm

http://help.sap.com/saphelp_erp60_sp/helpdata/en/9d/2ddd0972fb11d29e030000e839cd96/content.htm

Scenario -  IHB calculates and capitalizes interest daily based on current account balance. Interest is paid out every 6 months net of withholding tax.

Thanks,

Amit