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TDS(Tax Deduction at Source) Tax amount is incorrect when the first invoice of the Supplier experiences a Threshold Transition (Doc ID 2801986.1)

Last updated on AUGUST 25, 2021

Applies to:

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

Symptoms

On : 12.2.5 version, Tax Deducted at Source-Payables

ACTUAL BEHAVIOR
---------------
TDS(Tax Deduction at Source) Tax amount is incorrect when the first invoice of the Supplier experiences a Threshold Transition


EXPECTED BEHAVIOR
-----------------------
TDS amount should get calculated correctly during threshold transition

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

NOTE : The vendor doesn't have any existing invoices

Threshold Setup

1 to 5000000 > 0%
5000001 and above 0.1%

1. Perform third party registration ((N)> Oracle Financials for India > Party Registrations > Define Third Party Registrations)
2. Provide Default TDS Section
3. Assign the Supplier to the Exception Threshold setup ((N)> Oracle Financials for India > Withholding Tax Setup > Define Withholding Thresholds)
4. Create Invoice 1 for 75 Lakhs 0.1% Tax Category gets defaulted
5. TDS amount should have been 2500 [ (7,500,000 less threshold of 50,00,000) * 0.10% ]. However system has computed TDS as 7500

Changes

 

Cause

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In this Document
Symptoms
Changes
Cause
Solution
References


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