TDS is deducting wrong in same vendor code with different company codes

[ShoiabPathan]

I am using the TDS tax code under Section 194I for a 2% deduction on rent. However, when applying tax code 11 to the same vendor code across two different company codes, the calculation is incorrect

Scenario 1: In company code 6200, the TDS deduction for the same vendor code is being calculated at 24.71%, which is incorrect. It should be calculated at 2%, as per the applicable tax code.

PFA below

Scenario 2: In a different company code, the same tax code and vendor code are applied, and the deduction is calculated correctly at 2%

PFA below 

Kindly provide the solution on this case.

Best Regards,
Shoiab Pathan

#sapcommunity #sap #sapfico #tds #sapfi #sapsupport