TDS not reversing in F-54

[Former Member]

Dear Experts,

TDS calculated at the time of down payment (F-48). At the time invoice also TDS calculated (FB60).

But when i am doing down payment clearing TDS not getting reverse (f-54).

In withholding tax type 'central inv. prop' is activated

Please let me know if i miss any other configuration to reverse TDS at the time of down payment clearing

Regards

Kishore Sunkara

[Former Member]

did you sort this issue

[Former Member]

Yes it is resolved. In simulation mode (F.54) i am checking for TDS line item.

TDS line item will be appear only in general ledger simulation mode instead of that i have checked in simulation mode and i thought that TDS amount not captured.

[former_member198650]

At the time of down payment clearing, you have to provide the Invoice No. Then only system will display TDS reversal entry automatically.

[Former Member]

HI,

You can remove TDS from invoice through FB02 - withholding tax data (delete tax code). this will solve double taxation.

Jayanthi

[Former Member]

Dear all,

Thanks for your response

I guess i didn't explained my issue in proper way.

At the time of down payment client paid 50% of invoice amount 5000 and TDS @ 1%

The entry is

Vendor a/c           Dr 5000

TDS Payable a/c  Cr     50

Bank a/c             Cr  4950

Invoice booked for 10000 and TDS @ 1%

The entry is

Service Exp a/c    Dr   10,000

TDS Payable a/c  Cr        100

Vendor a/c           Cr     9,900

Till here system behavior is correct

Now client wants to clear down payment against invoice

The entry is

Vendor a/c     Dr       5000 (invoice amount)

Vendor a/c     Cr       5000 (Down payment amount) 

But the expected entry is

Vendor a/c              Dr    4950  (invoice amount)

TDS payable a/c     Dr        50 

Vendor a/c              Cr    5000  (Down payment amount)

please let me know is there any configuration to get reverse this TDS amount at the time of down payment clearing

For your information In withholding tax type 'central inv. prop' is activated

Regards

kishore sunkara

[sampat_kumkar]

Dear Kishor

As explained by you..Vendor invoice Rs.10,000/- Client paid advance 4950 amount after deducting 50 TDS.

Now at the time of invoice posting you should have deducted TDS on 5,000 only not 10,000.

But TDS deducted again on 10000/-

You want to reverse first TDS entry. I don't think so because bank GL is there.

There is option in vendor posting on which amount you want to deduct the TDS. You can enter manually.

Reverse invoice posting of 10,000 and repost it. So TDS amount would be 50.

Regards

Sampath

[Former Member]

Dear sampath,

But in testing client system behaving as per my requirement which is not happening in quality client.

Regards

Kishore Sunkara

[Former Member]

Hi..Check your Vendor recon accounts and Field Status Variants in recon accounts and 134701 field status in production all GLs and FSV's should be same as your test client

Ramesh Sunkara

[sampat_kumkar]

Hi

Check this setting @payment posting.

regards

Sampath

[Former Member]

Dear Sampath,

I have checked all field status of GL accounts in both clients. Both are having same field status options.

[sampat_kumkar]

Hi

add screen shot of that entry.......advance payment entry tds  from quality...simulate entry

sampath

[Former Member]

Dear sampath,

My concern is configuration in payment tax type for both clients are same.

But i don't know why it is not working in quality

Configuration in quality client

Configuration in testing client

Thanks for your support, still i am looking for route cause.

Regards

Kishore sunkara

[sampat_kumkar]

Hi Kishor

Its Ok......

but send screen shot of simulate entry of f.54.

sampath

[sampat_kumkar]

Dear Kishor

TDS to be deducted at the time of invoice posting or payment posting whichever is first as per rule.

Here you paid the amount and deducted TDS. Same while invoice posting also deducted TDS...

So you have to reverse the invoice not payment side....of course you have repost the invoice without TDS.

Hope its clear

Thanks

Sampath

[gauravkhandekha]

Hi...

Enter business place and section code at the time of posting down-payment (F-48), it will resolve your issue.