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TDS not deducted on accumulated amount after exceeding threshold limit in TAN based exemption

Dear Experts,

I have configured TAN based exemption & mapped invoice time & payment time WHT codes. Then i have maintained the details in vendor master threshold limit amount with 100% exemption.

1.When i posted 1st entry within the threshold limit system not calculated TDS its correct.

for Example: Threshold limit is Rs. 1,80,000 Exemption rate 100%, Posted entry for Rs. 150000, NO TDS. (CORRECT)

2. When i try to post second entry with Rs. 1,50,000 again, then the system should calculate on total amount i.e. Rs. 3,00,000 (150000+ 150000)

Whereas system calculating TDS on after exemption i.e. 120000 (3,00,000 - 180000) @ 10% = Rs 12,000 (WRONG)

System should calculate TDS on 3,00,000 @ 10% = 30,000

Please guide me where is the configuration or data is missing in maintenance.

Please note i have not selected manual accumulation because this is based on TAN base exemption scenario.

Regards

Avinash

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  • Posted on Dec 11, 2015 at 06:38 AM

    Hi Avinash,

    Check the w.h.tax type formula configuration. Here you have selected reduce base amount as 180000. If yes, then remove it.

    Regards,

    Mukthar

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    • Dear Mukthar Sir,

      I didn't maintained any formula based tax codes for exemption. I just configured as usual & mapped TAN based exemption Invoice time & payment time tax codes.

      Then i maintained the Tan exemption in CIN details in vendor master.

      Everything is working fine except my issue. I.e. TDS shall be deducted on total amount if threshold limit is exceeded.

      Please suggest further.

      Regards

      Avinash

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