With holding tax exceeds the customer/vendor line item001

[Former Member]

Hi Friends,

Please explian the following TDS Scenario

I have created invoice rs50,000670004000

Each amount represent seperate invoice.

According to income tax tax act sec194I, minimum base amount is rs 120000.

If invoice more than 120000, systom has to deduct the tax.

But in my case, three invoices(50000670004000) exceed the base amount. but at the final amount, sysytom has to be deduct the tax. But it showing the"with holding tax exceeds the customer/vendor line item 001".

Please give me possible sollutoin.

Regards,

Bramha

[Former Member · Accepted solution]

Hi,

an u check once the configuration in Define Min/Max Amounts for Withholding Tax Codes. In this step in which field u updated the min/max amount

[Former Member · Accepted solution]

Hi,

thank you for answer..

But i already updated the minimum base amount in tax code.

There is no problem. Because systeom is working fine for all vendors.including this vendors also which is i am getting the problem...

this is puruly user concept. some i am missing the problem.

Regards,

Bramha

[saikrishna_vallurupalli · Accepted solution]

as per section 194I of Income tax act, each bill exceeds Rs. 1,20,000/- or annual value exceeds Rs. 1,20,000/- tds should be deducted.

so your case total three bills exceeds 1,20,000/-, so tds should be deducted from three bills, as per act it is write. system also working correct.

let me know the further clarification

[Former Member · Accepted solution]

HI Friends,

Problem solved by consulting.

Regards,

Bramha

[Former Member]

Hi

check whether Bank account u r using is Relevant to cash flow in GL master

[Former Member]

Hi,

Thank you For your answer. But i want deduct the RDS at vthe time of Invoice. Because TDS is at the time of invoice or at the time of payment which ever is earlier. In my case Invoice is the first. That is why i am doing the invoice verification. At the third invoice verification systom is not able to deduct the tax. Because invoice amount is only 4000.(50000+67000).

Regards,

Bramha