TDS to be calculated on base value excluding service tax amount.

[former_member185462]

Dear Experts,

My client has a requirement for TDS calculation in FB60 vendor Invoice.

Scenario:

A vendor issues an invoice for Rs 100000 with 12.36% service tax, where the total invoice amount is 112360.

As per their requirement, the client will enter the whole amount i.e 112360 in the amount filed in FB60 screen which has to be fully posted in the expenses GL.

As per the normal TDS calculation the TDS will be calculated for 112360. (Value 11236) But the client wants TDS to be calculated only for base amount i.e for 100000 (Value 10000) and not on the total amount.

Condition: The base amount should not be entered in the With holding tax field manually. The system has to automatically calculate the TDS for Base amount alone and no manual intervention is done.

The vendor invoice amount and the TDS % will vary for different invoices. But the TDS has to be calculated only on the base amount without manual intervention.

Kindly provide me ideas and solutions on what can be done for the above issue.

Thanks in advance....

[former_member222241 · Accepted solution]

Hi,

Please create the withholding tax type and select radio button Net amount and assigned the same to new withholding tax created.

Regards,

Tejas