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With holding tax deducting at the time of APP

Former Member
0 Kudos

Hi,

I configured the WHT of payment and Invoice and assigned the same to the vendor. I made the WHT base as manual and posted the amount manually both at the time of down payment and at the time of invoice.. But the system is again deducting the TDS while I am making the payment to vendor through APP. Could you please explain what settings I have to do in order to not to deduct TDS at the time of APP

Advance Thanks

Koteswara Rao

Accepted Solutions (1)

Accepted Solutions (1)

0 Kudos

Hi Koteswara Rao,

Withholding Tax will be deducted Payment or invoice which ever is before. Hence, here if you paying any advance you will be deducting W.Tax. In the customer master in WTax tab you need to assign both tax codes i.e. Downpayment and invoice Tax codes

while making advance to vendor you will not be having any problem. in case you booking inovice then you have remove (FB60 ) Payment Withholding tax code in Taxes tab. otherwise when you make the final payment to the vendor it will be deduct 2nd time also.

so if you booking invoice you have to remove the advance Withholding tax code.

try this. it works

Vara

Former Member
0 Kudos

Hi,

Thanks. it is working fine.. It means even it is posting through MIRO also they have to remove the advance tax codes assigned to vendor..

Answers (1)

Answers (1)

Former Member
0 Kudos

Hi,

The system is actually reversing the TDS that was deducted while down payment.

Hence nullifying the extra TDS.

Hope its clear for you.

Cheers

Raghu

Former Member
0 Kudos

Hi,

It is not nullifying it is deducting again at the time of payment.

At the time of advance payment

Vendor a/c Dr 5000

To TDS 100

To Bank 4900

At the time of invoice posting ( invoice is for 10000)

Exp A/c dr 10000

To TDS on 5000 100

To Vendor 9900

When I am tryingto make the payment of balance 5000 through APP it is deducting again 100/- and paying only 4900 to vendor.. Hope this is clear and please now tell me what the problem