TDS as per 194c

[former_member773119]

Dear Experts,

As per Indian taxes,  section 194C TDS has to be deduct 1% on other than company and 2% on company. But it has some threshold limits as if a single contract exceeds Rs.30000/- or all contracts exceeds Rs.75000/- in a year, you have to deduct TDS from that particular vendor. Once TDS attracts in one of the both conditions TDS deduction has to continue on each bill for that year. Inaddition to that, at the time of TDS attract in one of the both conditions, TDS has to calculate for all previous contracts which is below threshold limit at that time in addtion to the present contract base amount which is exceed threshold limit.

Pls....give me step by step process of configuration by satisfying above all conditions for a single vendor.

Rgds,

Naru

[former_member198650]

Hi Naru,

I think you have done withholding tax configuration. If not, please search in SCN you can find the necessary information.

Now come to your query, In withholding tax type for invoice and payment, you have to select accumulation type and also specify the starting month for accumulate the values.

At the time of withholding tax code creation, you have to select "W.tax.form." check box.

Later in the same node, in define formulas for calculating withholding tax, you have to add the w.h.tax type & code and select the sub node formulas for cal.w.h.tax, here you have to specify the base amount as 75000 and do not specify any rate. Add one more entry with the to base amount as 999,999,999,999, with w.h.tax rate 1%,save it.

Regards,

Mukthar

[former_member773119]

Hi Mukthar,

thanks for your valuable reply......i have configured the same , but here we have two conditions....first condition is 30000/- per document, second condition is 75000/- per year..

Please can you suggest for both conditions to be satisfied.

Rgds,

Naru