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TDS exemption

Former Member
0 Kudos

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

Accepted Solutions (0)

Answers (3)

Answers (3)

sanilbhandari
Product and Topic Expert
Product and Topic Expert
0 Kudos

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
0 Kudos

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
0 Kudos

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
0 Kudos

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
0 Kudos

hi

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