Wrong TDS amount is geting calculated in Invoice (applied)

Rishi28

Hi All,

Wrong TDS amount is getting calculated in Purchase Invoice, applying against an advance payment transaction. Kindly hep me to resolve the issue.

The situation is stated below with transaction amount.

Step 1: An advance payment is made against an Vendor. This transaction includes both Service Tax & TDS and system is doing correct calculation.
The transaction- Advance Payment amount is Rs. 4000. Serice tax is 10.3% of base = Rs. 412 and TDS 10% of (Base + Service Tax) = 10% of Rs. 4412 = 441. Cheque amount = 4412 - 441 = Rs. 3971.

Step 2: A Purchase invoice is created for the same Vendor for amount Rs. 4500, is applying against the advance payment. In this transaction, the Service Tax amount is getting calculated correctly but the TDS on the balance amount (Rs. 500) is getting calculated wrong.
The transaction-

* Total invoice value is Rs. 4500. Service Tax amount is Rs. 463.5 [ Rs. 412 (for advance payment) + Rs. 51.5 (Balance invoice amount)]. After posting the Invoice Rs. 412 will be booked in Service Tax Control A/C and Rs. 51.5 will be booked in Service Tax Interim A/C.
* In this Transaction, TDS Base amount should be Rs. 500 (balance invoice amount) + Rs. 51.5 (Service Tax amount) = Rs. 551.5; so TDS amount = 10% of Rs. 551.5 = Rs 55.......But in the system TDS Base amount is getting calculated as Rs. 139.5 (Rs 551.5 - 412) and TDS is Rs. 14.

Kindly help.

Thansk & Regards
Rishi

manisharma31

Are you applying the payment to the invoice before posting the invoice.
If yes then have you check the statistics of that invoice before posting, there what were the values, were they what you expected.

Secondly have you navigated the vendor ledger entry and check the value in the tds amount field.

Hope you are talking about Nav 2009 SP1 version.