Wrong calculation of TDS for Party having exception setup after application of Reverse Charge patch
We have recently applied reverse charge patch on test instance and have come across various issues. One of the major issue is wrong calculation of TDS after threshols is crossed for exception setup. E.g for a case where Vendor has issued a lower TAX deduction certificate under section 197(1) of I/T Act 1961 relating to deduction of tax at source. The cerficate says TDS is payable at 2% upto Rs. 10,00,000/- for specified services and after that at the normal rates
We have defined the threshold as follows
Threshold Type - Cumulative
Amount slabs
From Amount To Amount Rate Operating Unit Name Tax Name
0