Automated Multiple TDS Deduction with Threshold in Oracle Financials (India Localization)
We are performing Withholding Tax (TDS) setup in Oracle Financials (India Localization) to ensure that tax is automatically deducted at the time of AP invoice creation.
We have the following withholding tax sections, each with different rates and threshold limits, and more than one may be applicable to a single AP invoice.
Deduction Type | Section | Applicable On | Rate (%) | Threshold Limit |
|---|---|---|---|---|
Purchase of Goods | 194Q | Medicines, consumables, equipment | 0.1% | > ₹50 lakh per supplier per year |
Contract – Individual / HUF | 194C | Security, housekeeping, maintenance | 2% | Single > ₹30,000 or total > ₹1,00,000 |
CGST TDS | Section 51 CGST Act | Works contract / Services | 1% | > ₹2.5 lakh |
SGST TDS | Section 51 SGST Act | Works contract / Services | 1% | > ₹2.5 lakh |
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