TDS exemption

[Former Member]

HI All,

Currently the certificates issued by the Govt. are based on amount i.e If total billing amount for vendor is upto Rs 500000 then apply 1% eg after crossing 500000 tds amount should be calculated normally.

How are you managing this in system.

Pls provide your suggestions.

Regards,

Meenakshi

[sanilbhandari]

Hi

You can define formulae for TDS calulation. The path is:

IMG>With Holding Tax>Extended With Holding Tax>Calculation>With Holding Tax Code>Define Formulae for Calculating With Holding Tax Code

Regards

Sanil Bhandari

[Former Member]

HI Meenakshi,

Make two setting for this. Go to Calculation -> Withholding Tax Type -> Define Withholding Tax Type for Invoice Posting and select Per Year, starting with month from accumulation type & eneter the 1 there. This means the vendor invocie calculation is done from first month of the fiscal year.

Secondly, go to min/max amount for tax code & put min amount as desired.

System will not calculate TDS till this amount in total will be crossed.

Regards,

Ajay

[Former Member]

But i have two concerns in this:

1. this setting is at TDS code level not at vendor level.

2. I want the system to calculate the TDS till that minimum amount at lower rate.

regards,

Meenakshi

[Former Member]

I think such setting cannot be possible as this includes change in tax codes. Not confirmed but can u try using user exit

Regards,

Ajay

[Former Member]

hi

i think this will be maintain in the TDS Rates against the TDS Codes.