TDS on rent once threshold limit is crossed during fiscal year

[Former Member]

Hi,

Please suggest what would be the solution in RE-FX when applicable of TDS on rent once the threshold limit is crossed during the fiscal year?

I would like to share the example in where i am looking for your's valuable suggestion.

Normally, the TDS will be deducting as per vendor's income tax slab. Suppose, There is a vendor who is not coming under income tax slab (means, his income less than & equal to 1.8 lacs). When rent amount increases *@ 10% of 15,000* in mid of the fiscal year (ex. July month) as per contract agreement then, then total amount get increased. Then, the vendor has to pay the TDS. Thus,

System should calculate the TDS amount july month onwards or january month onwards?

i understand system would calculate it from july month onwards if i am not wrong. So, my question is

Is there any configuration in where system should calculate the TDS January month onwards rather than july month?

Regards,

Shankar

[Former Member]

Shankar,

I assume this is a Lease In Contract and based on the threshold rent amount TDS is charged to Vendor/Reimbursement. You can do that if wish to do automatically then by using Sales based by setting up max and min limits. Other way is to have BADI create a Condition for the TDS amount.

If I am understanding your question correctly, you want to start Condition posting for TDS from Jan but the condition itself will be created in July when the rent crossed the threshold?? You can do that put condition start date as past date and in July system will post everything starting from Jan. If you wish to post in respective periods then you can do that adjustment in FI or in REFX.

May be if you can explain your requirement little more, I can answer it.

Jag

[Former Member]

Thanks for your suggestion...Jagnnath..

Sorry for late response..

The requirement is the one who do this activity never knows whether the vendor is coming under TDS slab or not...to know that same..he/she has to go to vendor master level..

As you have suggested that the new condition rent would be used in contract master for the january month that calculates the TDS january month onwards where as, present behaviour of the system is calculate the TDS amount for July month if the vendor comes under TDS slab on July month..

The concern is like..is there any specific configuration which need to be done in RE-FX so system must understand and deduct the TDS amount for vendors irrespective of the TDS slab amount of the vendor.

Regards,

Shankar