Withholding tax Error.

[Former Member]

Hi All,

I made a down payment of 50000 to a vendor and deducted tds.  Than i received an invoice of 1lac.  Now, the errors are:-

1) The system is calculating tds on whole invoice instead of the balance amount. 

2) TDS challans are getting created of only TDS amount from the Down payment.

3) GL account of TDS payable only pays off and clears the TDS on Down payment and TDS on invoice is still open and payable.

4) In Tax Types i have selected Central Inv. Prop. than why the system is not adjusting the Down payment against the Invoice?

Please advice.

Thanks,

Kamal

[m_madhu]

HI KK,

Please check the FSV (field status variant for w/tax files).

also maintain the entires as per note no 640231 in table like

TRWPR, TRWCA, TRWCI.

Regards

Madhu M

[m_madhu]

HI KK,

Please check the FSV (field status variant for w/tax files).

also maintain the entires as per note no 640231 in table like

TRWPR, TRWCA, TRWCI.

Regards

Madhu M

[pankaj_pandey2]

Hi KK

Check out the Tax code whether it is mapped  with a WHT key or not. i f central invoicing is ticked system will reverse the TDS deducted against down Payment.  Check the WHT key against the Tax code.

Regards

Pankaj

[former_member1009083]

Hi,

     There are two things responsible for this (a) is make sure  Central Invoice Prop is selected in payment withholding tax type & (b) Business Place & Section Code exists in both Down Payment & Invoice

       As you are saying you have maintained both of these options.

       Then check also the following:

Make sure payment withholding tax type & Payment Withholding Tax Code does not exist in the invoice line item

Regards

Diptadhi

[Former Member]

Hi Diptadhi,

All these criterias i have considered and are in place while posting the documents. 

Thanks,

Kamal

[former_member1009083]

Hi,

    Kindly check that whether you have given Business Place & Section Code both at the time of Down payment & Invoice Processing. TDS will not be reversed if you do not give Business Place & Section Code.

Regards

Diptadhi

[Former Member]

Yeah, the entries are right.  I have taken B.place and S.code in both the entries. Dont know why its not reversing the TDS...Do we have to consider anything other than B.place & S.Code at the time of posting the invoice and Down Pmt.

[former_member1009083]

Hi,

   While adjusting Down Payment against Invoice is the TDS amount deducted against Down Payment of 50000 is reversing?

   If Down Payment with TDS is adjusted against the invoice , then the challan should update TDS deducted at the time of Invoice only

Regards

Diptadhi

[Former Member]

No Diptadhi, It is not reversing.  TDS payable on Down payment is knocked off against the bank payment while issuing the challans BUT the TDS payable on Invoice (TDS is calculated on whole invoice, down payment tds is not adjusted) is still standing as Payable.  It is not been considered by the system while adjusting the down payment or while issuing challans.