TDS not charged for Interest Calculation

[Former Member]

Hey Guys, I'm configuring TDS charged for interest calculation. We have a vendor for whom we owe an amount and we are paying interest for it. When I calculate Interest using F.44 for the amount, the interest is getting calculated and also getting posted to the vendor account. But, the TDS (which is 20% on the interest amount) is not getting deducted. When I run F.44 it is creating a batch input and that is creating a KA type document for interest posting to the vendor account. I guess in the batch run the Withholding Tax Type and Withholding Tax Code are not getting invoked when creating interest document for the vendor.

Any help appreciated.

[pankaj_pandey2]

HI Sai,

You have to define TDS code under Maintain Withholding Tax Code for Interest Document In Interest Calculation Global Settings. And assigne the same code in Vendor master also. Cehck the same,

Hope this would help you.

Regards

Pankaj p

[Former Member]

Hey Pankaj, I have already set the withholding tax code for Interest Document in IC Global Settings. It is also assigned to the vendor master record.

[pankaj_pandey2]

Hi Sai

Check if any exemption or the forrmula is defined for this tax code.

Else system will pick the TDS at the time of posting. Process the transaction  in background.

Regards

Pankaj P