TDS setup for India

Hi,

I am currently setting up the TDS configurations for my India entity. From my research, TDS is actually the withholding tax in India. I have already set up all the tax code and tax type in the extended withholdng tax. However, I heard that TDS has the requirement of Threshold where the withholding tax calculation will only start when the total payment amount is more than a certain threshold. Is that correct?

For example,

Contractor A:

1st Payment - January 2008 RS 5,000

2nd Payment - March 2008 10,000

3rd Payment - June 2008 10,000

4th Payment - October 2008 30,000

There are 4 payments to contractor A as shown above. According to what I understand, TDS will be only be applicable at the 4th payment stage but it will calculated the total amount of TDS from 1st payment to 4th payment, and the whole TDS amount will be deducted from 4th payment. Also the rule here is TDS deduction should be at the stage of booking of Invoice or payment of invoice whichever is earlier.

Is what I have describe in the example above correct? If it is correct, how do I set up the threshold in SAP? Thank you for your kind help.