cancel
Showing results for 
Search instead for 
Did you mean: 

Withholding tax calculation based on formula

Former Member
0 Kudos

Hi,

I am trying to apply some formula while calculating the withholding tax to a customer invoice.

I have used the formula range as:

10% upto 1000

20% for 1001-2000

30% for 2001 and above.

However the formula is calculating correctly for the range till 1000 but above 1000 the formula is not working properly. Kindly help me to resolve the problem.

I have configuration for your ref find the below attached file  , but at the invoice for e.g Invoice amt Rs 1500 . that time system deducted Rs .200 , why  this happening

WH Type

Thanks in advance

Accepted Solutions (0)

Answers (3)

Answers (3)

Former Member
0 Kudos

Hi Jay,

I have gone through your config. of tax code and tax types.

In formula for calculating with holding tax :

up to 1000 if u want to deduct nil than provide 0% or keep it blank.

from 1000 to 2000 , if u want to deduct tax 200 provide tax rate @ 20%.

and accordingly configured it.

if u still not clear , request you to provide me your exact slab and rate of tax.

Will configure in my system and give u detail document.

Regards,

Dhaval Shah.

Former Member
0 Kudos

Thanks your Dhaval for reply  ,, For your ref find the below details of rate and amt

Amt                                                           TDS  Rate 

Rs O TO  RS 1000                                       0 %

RS.1001 to 2000                                          20%

RS  2001 to 3000                                         30%

When i am posting Invoice Rs 2000  TDS amt is Rs 200,  but my system is calculating Rs 300 TDS, i more thing i am using formula based WHT calculation any rule ?

If it is possible  in your system , Please share with me tax code confi step and doc

Regards

Jay

Former Member
0 Kudos

Hi all ,

Please reply my above query!!!!

Former Member
0 Kudos

Hi Dhaval ,

Wish u happy new year,,,

Thank you sir for your immediate reply  ,  i already tick above WHT tax cod. i have done all confi step .

However the formula is calculating correctly for the range till 1000 but above 1000 the formula is not working properly. Kindly help me to resolve the problem. for your reference see above attached scree shot. for e.g

rate         amt

10% upto 1000

20% for 1001-2000

30% for 2001 and above.

when i am  invoice posting Rs 1000 System calculate proper , when i going to posting invoice Rs. 2000 system not calculate correct amt. system calculate TDS amt is Rs .300 , but in configuration i have maintained 2 % rate. for ref find the below screen shot. Pls help me !!



Thanks & Regards

Ajay Pal

Former Member
0 Kudos

Hi Jay ,

Happy new year to you  also... can u please send screen shot of WTH tax code config...?

Regards,

Dhaval Shah

Former Member
0 Kudos

Hi Dhaval,

For your ref find the below cofi tax code

Former Member
0 Kudos

Hi Jay,

Please enter Reduction base amount in formula based calculation  as well as with holding tax rate in tax code and try to post document.

Regards,

Dhaval  Shah

Former Member
0 Kudos

hi Dhaval ,

As per your reply , i  tried  but now system calculate Rs.300 tds for RS 2000 , instead  of  Rs 200

for your ref find the below details.

Former Member
0 Kudos

Hi Jay,

From the screen shot i understand the above is a scenario where Tax calculation is based on slabs.

And as per the setup if you post the document with value 2000 the tax will be calculated as 300 as below.

Start Value (a)End Value (b)Balance (a) - (b)Tax RateTax Value
0.001000.001000.0010%100
1000.002000.001000.0020%200
2000.009999999.009997999.0030%
Total300

Please check if the same is fine or if your requirement is different that the above i would request you to explain the same in details.

Regards,

Vishal

Former Member
0 Kudos

Thank you sir for immediate reply ,,,,

As per above reply ,, currently my system calculating Rs.300 , so But i want to calculate TDS amount Rs.200 . that is my requirement  for e.g

If vendor invoice RS 1000                                     TDS 0 %

If invoice more then  RS.1001 to 2000                         2%

if invoice more then 2001 to 3000                                 3%

But at time of posing Invoice Rs. 2000   , system should be deduct TDS Rs 200 , but here is tds calculate Rs 300

I want to Calculate Rs 200 TDS. &   what is working of accumulation type ?

Pls help me sir ,, waiting for reply

Regards

JAY

sanilbhandari
Product and Topic Expert
Product and Topic Expert
0 Kudos

Hi


If you want to have formula based on slabs working, you need to maintain accumulation type in your with holding tax type. Than system will keep track of how much invoice amount has been booked.

Regards


Sanil

Former Member
0 Kudos

Hi sunil ,

Thanks for reply , i already maintained accumulation type in tax type , but system calculate wrong tds , for your reference find  above my  first attached file of details, if you have any configuration document ,pls share with me !!!!

Regards

JAY

Former Member
0 Kudos

Pls help me sir!!!!

Former Member
0 Kudos

Hi Jay,

You have given config for the Tax type only. Request you to check config of relevant tax code also.In tax code there is one check box which need to select to make special  calculation.

i have attached screen shot for your reference where W.tax form tick is necessary to make special calculation