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Wrong withholding tax calculation in MIRO with delectable tax in down payment

Nov 01, 2016 at 08:17 PM

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Former Member

Dear All,

I have an issue related with withholding tax calculation during MIRO with Down payment clearing which have component of deductible tax

While making of 10% down payment against PO of 11,500/-(Down payment +15% Service tax(Cenvatable)) the entry is

Vendor A/c Dr 11,500/-

To Bank A/c 11,500/-

While doing invoice entry through MIRO with down payment clearing option, the system is calculation withholding tax on basic invoice amount + on delectable tax at the time of down payment

Vendor A/c Cr. 1,12,970/-

GR/IR Clearing Dr. 1,00,000/-

Service tax Dr 15000/-

Withholding tax @ 2% Cr. 2,030/-

(withholding tax should be 2000/- @2% on100,000/- instead of 2,030/-, 30 is being wrongly deducted @2% on deductible tax of Rs 1500/- at the time of advance given)

Please suggest me how to correct withholding tax value...

Thanks & Regards

Monika Singh

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