TDS Dependencies

[Former Member]

Hi all

I am maintaining 3 WT types for TDS- i.e Basic TDS, Education Cess and igher Education Cess. I have maintained the rate as say 10% for TDS, 2% for Edu Cess and 1% for Higher Cess. However, i have also created dependencies for the Tax Types i.e ECS and HECS are dependent on the Basic TDS Code. However, the TDS is not getting calculated correctly and the ECS and HECS are getting calculated on the Gross Invoice amount instead of the Basic TDS amount.

Please lemme know whr i am going wrong.

Cheers

Hrishi

[Former Member · Accepted solution]

Check the ECess and HECess WHT Code configuration. Base amount % you might have given 100% it should be 10% because these are calculate on the WHT amount i.e 10% of base amount.

[durgasankar_innamuri]

Hi,

At the time of defining withholding tax type are you choose tax amount or gross amount. I think you choose gross amount because of this only this problem is coming. For the dependencies (ecess and higher ecess) choose base amount as a tax amount and choose inhereit base option down.

At the time of defining tax code specify the base amount as 100 dont change anything. at the time of defining only you have to specify the amount specification whether it is gross amount or tax amount.

Hope this is clear, if yes assign points, any problem revert me.

Regards,

Sankar

[Former Member]

Thxs for ur reply......But its not working.

[Former Member]

Hi,

For example Inovice value is rs.100

Basic - 5%,Surcharge : 10% Ecess 2%

You can maintain the rate as below:

Basic tax : 5 (100*5/100)

S.charge :0.5 (5*10/100)

Ecess : 0.11( 5+0.5 = 5.5*2/100)

You can directly maintain 5%,0.5.%,0.11% respectively for all taxes types.

Then u won't get any problem ... It will work fine ... we are also following the same.

wish u good luck

prasad

[Former Member]

At invoice posting are you giving gross amount for Ecess and HEcess. You must give gross amount only in the Basic Rate and leave the other blank.