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Former Member
Dec 06, 2011 at 05:57 AM

Exemption in TDS

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Our client is having the following requirement:

For a vendor the threshold limit upto which exemption of 0.75% is given is 93,00000. It means that:

1. invoice 1: 10,00000

Cumulative: 10,00000, exemption allowed: 0.75%

2. invoice 2 : 50,00000

Cumulative: 60,00000 (inv 1 amt+ inv 2 amt), exemption allowed: 0.75%

3. invoice 3 : 30,00000

Cumulative: 90,00000 (inv 1 amt+ inv2 + in3), exemption allowed: 0.75%

4. invoice 4 : 10,00000

Cumulative:1,00,00000 (inv1inv2inv3+inv4), exemption allowed: not allowed as threshold limit of 93,00000 has crossed

How can this situation be handled in SAP? How will the cumulative be kept track of in witholding tax?

Please advise.

Edited by: devdatth09 on Dec 6, 2011 11:33 AM