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TDS not deducted on accumulated amount after exceeding threshold limit in TAN based exemption

Dec 05, 2016 at 05:36 AM

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Dear Experts,

I have configured TAN based exemption & mapped invoice time & payment time WHT codes. Then i have maintained the details in vendor master threshold limit amount with 100% exemption.

1.When i post 1st entry within the threshold limit system does not calculate TDS which is correct. for Example: Threshold limit is Rs. 1,80,000 Exemption rate 100%, Posted entry for Rs. 150000, NO TDS. (CORRECT)

2. When i try to post second entry with Rs. 1,50,000 again, then the system should calculate on total amount i.e. Rs. 3,00,000 (150000+ 150000) Whereas system is calculating TDS on after exemption i.e. 120000 (3,00,000 - 180000) @ 10% = Rs 12,000 (WRONG) System should calculate TDS on 3,00,000 @ 10% = 30,000

Please guide me where is the configuration or data is missing in maintenance. Please note i have not selected manual accumulation because this is based on TAN base exemption scenario.

Regards Pooja

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4 Answers

Mukthar Ali Ahamed N Dec 05, 2016 at 07:34 AM
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Hi,

Select no accumulation in the w.h.tax type for invoice & payment. Then it considers total amount.

Regards,

Mukthar

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Hi Mukthar,

I have selected No accumulation for w.h. tax type for invoice & payment.In vendor master in CIN Details tab i have maintained Exemption details - Section Code, Certificate No.,Exem Rate,Exempt From & to Date,W.H. Tax Type & Tax Code as I1 & Threshold limit as 1Lakh.

When i post Invoice for Rs. 90,000/- its not calculating TDS. (CORRECT)

But when i post another invoice for Rs.50,000/- system is still not calculating TDS.

Kindly help me solve this issue.

Thanks & Regards,

Pooja.

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Mukthar Ali Ahamed N Dec 06, 2016 at 07:49 AM
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Hi Pooja,

Have changed the accumulation type after done posting? And also check section code maintained at document posting?

Regards,

Mukthar

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Hi Mukthar,

I had already changed the accumulation type before posting invoice. I was not maintaining section code at document posting level, again i tried posting with section code but the result is same TDS is not calculated.

Thanks & Regards,

Pooja.

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Mukthar Ali Ahamed N Dec 06, 2016 at 11:08 AM
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Hi Pooja,

You have to maintain section code at document posting. Try with different vendor and check the results.

Regards,

Mukthar

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Hi Mukthar,

I have maintained Section code at Document Posting & tried with different vendor, But still its calculating on balance & not on the entire Invoices amount.

Please help me resolve this issue.

Thanks & Regards,

Pooja

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Mukthar Ali Ahamed N Dec 08, 2016 at 12:17 PM
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Hi Pooja,

The system is behaving correctly. If you want to calculate TDS on whole amount, in that case delete thresh hold limit details in the vendor master, select accumulation type in w.h.tax type, later maintain the threshhold limit with rates in the formulas in w.h.tax type configuration. Then system will calculate TDS as per your requirement.

Regards,

Mukthar

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