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Incorrect TDS Deduction In Case Of Transition Slab (Doc ID 2755727.1)

Last updated on MARCH 02, 2021

Applies to:

Oracle Financials for India - Version 12.1.1 and later
Information in this document applies to any platform.

Symptoms

ACTUAL BEHAVIOR
---------------
Incorrect TDS tax rate defaulting if there is a transition from one slab to another Slab.

EXPECTED BEHAVIOR
-----------------------
When there is a transition from one slab to another slab the Transition tax category should be generated and defaulted to Invoice.

STEPS
-----------------------
The issue can be reproduced at will with the following steps:

1. Create Withhold Threshold setup with two slabs for example as below:
-1st Slab: 0 -100000 ---2% Tax Rate
-2nd Slab 100001 - above -----7% Tax Rate 

2. Then Create (do not validate) Invoice in below Sequence:
- Created 1st Invoice: 85000 ---2% Tax Rate Defaulted
- Created 2nd Invoice: 15000 -------2% Tax Rate Defaulted 

3. Then Validated 2nd Invoice first.
After that Validated 1st Invoice. 

4. Created 3rd Invoice and Validated : 55000 ----- 3.9% Tax Rate Deducted
-This is incorrect. Ideally it should have 7% Tax Rate only.

Changes

 

Cause

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In this Document
Symptoms
Changes
Cause
Solution
References


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