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Witholding Tax Adjustment

Former Member
0 Kudos
120

Hello Friends,

I am having query regarding witholding Tax.

We have made advance payment to vendor and TDS is deducted on the same, now when we are entering invoice again TDS is deducted.

How we should we adjust the amount on which TDS is already deducted.

Eg.

Say we have paid advance of Rs 100000/- to XYZ ltd and TDS deducted on it is Rs 1000/- @ 1%.

We are receiving Invoice of Rs. 120000/- from XYZ ltd, while booking the invoice TDS should on balance amount should be deducted i.e. Rs. 20000/-.and not on Rs 120000/-.

Regards

Punit Bhayani

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
0 Kudos

clear the advance against the invoice item. Then it would be OK

Answers (2)

Answers (2)

Former Member
0 Kudos

Dear Shankar,

Thanks for your reply.

As stated by you, i have cleared advance through F-54, then also system has not pass TDS reverse entry.

Please let me know, whether we need to have any configuration at the time of preparing witholding tax type & Code.

Regards

Punit Bhayani

durgasankar_innamuri
Active Contributor
0 Kudos

Hello punit,

For TDS reversal througth F-54 please check first the documents some fields like business place and section code is specified correctly, in all line items business area is there. those fields are required.

From TDS reversal point of view.

1.TDS line items (in advance payment document) with same t.code.

2. Business place and section code should appears same in both the documents.

3. TDS line items are still open or cleared.

4. Check TDS account has open item management button active or not.

Still problem consists revert back

Regards,

Sankar

durgasankar_innamuri
Active Contributor
0 Kudos

Hi punit,

Example: while making adavance payment to vendor system deduct TDS 100 on the payment of 10000

After advance paid invoice booked against that advance through MIRO or FB60 then system is deducted TDS 120 on the invoice amount of 12000.

Now come to F-54 please specify all the header data. after that give the vendor code and in relevant invoice specify the accounting document number of MIRO or FB60. after you press enter choose the respective document number ( Initially advance paid).

choose the document number and go for simulate system will give debit to TDS account for the amount of 100.

Please be ensure relevant invoice document contains to the same vendor and TDS has to be deducted.

In case if invoice booked for the amount of 8000 then in F-54 specify amount manually in transfer posting column for the advance document number so that system will reverse TDS portion of 8000 and 2000 amount and its TDS will be remain there.

If u transfer through F-51 or any other t.code system will not do TDS reverse automatically.

Hope this is clear and solve your problem. In case of problem revert me back.

Regards,

sankar