TDS calculation on basic expense amount

[Former Member]

Hello Experts,

I am unable to calculate TDS amount on basic expense amount. As currently its getting calculated on Gross Amount of the invoice which inclusive of service tax. So anybody please let me know how to calculate TDS amount on basic expense amount which is exclusive of service tax?

Here for example I will calculate TDS for Rent @10% on Rent Expense Amount of INR 10,000.

Rent expense amount         INR  10,000

Service Tax amount @15%  INR    1,500

                                        ------------------

Total Invoice amount            INR 11,500

                                        ------------------

TDS will be calculated on INR 10,000 i.e. INR 1,000

So my final Journal Entry will be:

Rent Expense A/c ---Dr   INR 10,000

Service Tax A/c -------Dr     INR 1,500

     To Vendor A/c                        INR 10,500

     To TDS on Rent A/c                INR   1,000

Thanks & Regards,

Pranav

[former_member198650]

Hi Pranav,

In w.h.tax type configuration change the base amount as net amount.

Regards,

Mukthar

[Former Member]

Hi Mukthar,

Do we need to tick on Inherit base also??

Thanks

[former_member198650]

Hi Pranav,

Have you done any configuration in portray dependencies for w.h.tax? If it is, then select the check box, other wise not required.

Regards,

Mukthar

[Former Member]

Hi Mukhtar,

No we have not done any configuration in Portray dependencies..

Also tried other options which you sent in the above messages, but they are not working..

Thanks,

Pranav

[former_member198650]

Hi Pranav,

Definitely it calculates on base amount, if you made above settings. However, check in FB00 whether calculate tax on net amount is selected or not?

Regards,

Mukthar

[Former Member]

Hi Mukhtar,

Yes calculate tax on net amount is selected..

Thanks,

Pranav

[former_member198650]

Hi Pranav,

Then check posting or share screen shot of posting document.

Regards,

Mukthar

[Former Member]

Hi Mukhtar,

Issue resolved. Thanks for your guidance.

Thanks & Regards,

Poonam

[Former Member]

Hi Mukhtar,

Issue resolved. Thanks for your guidance.

Thanks & Regards,

Pranav

[former_member198650]

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