TDS deduction based on expemption amount

[Former Member]

Dear All,

Would like to know if there is a procedure to deduct TDS based on the exemption amount in the exemption letter given by vendors.

Standard setup has got exemption date range but no exemption amount.

Thanks.

Sembian

[Former Member]

Hi,

Go to the vendor master of the particlar vendor who has the exemption

take the with holding tax tab there

Withholding tax can be exempted from withholding tax up to the percentage rate you enter In the column exemption %

hope you are clear now

Regards

Arun.R

[Former Member]

Hi Arun,

Thanks.

The exemption rate as mentioned by you is for a date range but not available for amount. We have received letters from vendors where exemption is not for a date range but for a amount.

Regards

Sembian

[Former Member]

You can use the accumulation option in the withholding tax key and define maximum amount for calculation of tax on the amount range.

[Former Member]

Hi,

Could you please elaborate on this point.

Thanks

Sembian