withholding tax path is:-

Financial accounting> Financial accounting global setting>withholding tax> extended

withholding tax.
there u can find the customising steps of withholding tax.

You can take the help of following for customising Withholding tax.

You must make various settings in Customizing and the master data of the business partners
concerned in each of the company codes.

Please maintian following settings.

(i) Activate extended withholding tax.

This is to be done under Financial Accounting Global Settings ->Company Code-> Activate
Extended Withholding Tax.

(ii) Set up reporting: Make the settings for withholding tax reporting. You do this in two
places:

Under Financial Accounting->Financial Accounting Global Settings->Withholding Tax-

>Extended Withholding Tax->Basic Settings in the Implementation Guide for Financial
Accounting, you define for example, the countries in which withholding tax is reported, the
official withholding tax keys, and reasons for exemption.

Under Financial Accounting-> General Ledger Accounting->Business Transactions->Closing-

> Reporting-> Extended Withholding Tax: Reporting you make the settings for the forms for
reporting the tax.

(iii) Define withholding tax types: Financial Accounting Global Settings-> Withholding Tax->
Extended Withholding Tax->Calculation->Withholding Tax Types

(iv) Define withholding tax codes: Financial Accounting Global Settings-> Withholding Tax->
Extended Withholding Tax->Calculation->Withholding Tax Codes->Define Withholding Tax
Codes.

(v) Define minimum and maximum amounts: Financial Accounting Global Settings-
>Withholding Tax-> Extended Withholding Tax->Calculation->Minimum and Maximum
Amounts

(vi) Define accounts for withholding tax: Financial Accounting Global Settings-> Withholding
Tax->Extended Withholding Tax->Postings->Accounts for Withholding Tax .

(vii) Define liability to tax and deduction authorization (master data): Withholding tax is only
posted for a withholding tax type if the vendor is defined as subject to tax for this withholding
tax type, and the customer is defined as authorized to deduct tax for this type.

(viii) Configure certificate numbering for withholding tax:Financial Accounting Global

Settings->Withholding Tax-> Extended Withholding Tax->Postings->Certificate Numbering for
Withholding Tax.

If necessary, use the analysis report for extended withholding tax (RFWT1000). You can use
the report to check your customizing settings for consistency,getting an overview of the
withholding tax-relevant settings in customizing and the master data of your business
partner.