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Triple deduction of TDS

Former Member
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TDS is being deducted at the time of Vendor Down Payment, Invoice Posting and also at the time of Making the Payment through f-53 which should not deduct.

Can anyone help where I am going wrong.

Regards

Ravindra

Accepted Solutions (0)

Answers (3)

Answers (3)

former_member496354
Discoverer
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hai when u made the advance payment the system should have deduteced the tds and posted to the tds payable a/c. again at the time inoice posting if the amount of the invoice is equal to advance made , we should not the reduce the tds again. for this remove both the tax codes from the pop up screen displayed while posting the vendor invoice. if the amount of the invoice is more than the advance paid then the system should reduce the tds only on the excess of the invoice over the advance amde. for this u can enter the amount on which the tds is to be reduced manual in the pop up screen while posting the invoice against the tax type for invoice posting. i think this will clear ur problem

Former Member
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Did this help? If yes please assign points

Mukesh

Former Member
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Dear Mukesh

Thanks for your guidance and immediate reply. Now the problem is solved. I need a small clarification. When the TDS is deducted at the time of Advance it is getting credited to TDS payable Account. And while posting the Invoice the TDS is getting deducted on the total Invoice Value. Is there any chance of Adjusting the TDS amount deducted at the time of Down Payment While posting the Invoice so that the net TDS should be deducted and posts to the TDS Payable Account.

Regards

Ravindra

Former Member
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The function of f-54 is to reverse the tax effect of the advance amount. When you adjust the advance using f-54 in case the advance and invoice amount are equal the tax effect would be nil. The TDS amount does not get cleared automatically in the TDs gl. I also felt the same way earlier but of usage and facing various issue I find the logic as defined okay.

Regards

Mukesh

Former Member
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Once you book Inovice you do down payment adjustment thru f-54. This will nullify the effect of the tax deducted at the time of advance payment. Further it is quite possible that you have selected payment as well credit tds codes while booking the invoice which is why the tds is getting deducted at payment time also.

Regards

Mukesh Mangal