Withholding Tax calculation based on Invoice Threshold
Hello Team,
TDS is getting calculated correctly with in the limit,but when the bill is entered beyond the Tds limit , Tds is getting calculated for the entire amount on the higher side instead of balance in Tds exemption at lower
side and for the balance should be calculated on the higher side.
For Example :
TDS Limit Set is Rs.3,00,000 @ 0.5%
Bills entered 4 - Rs.85,000 each
For the first three invoices Tds is getting calculated @0.5% correctly, (3,00,000-2,55,000) balance of 45,000 is available under exemption. but for 4th bill it has to calculate 45000 @ 0.5% and balance of 40,000 @ 2%.
Instead Tds is calculated @ 2% for the entire value of Rs.85,000/-