My Oracle Support Banner

OFI: Incorrect Rounding Applied on Tax Deducted at Source (TDS) Invoices And Amount Does Not Match with TDS amount Appearing in TDS Tax Details Form (Doc ID 2982516.1)

Last updated on OCTOBER 30, 2023

Applies to:

Oracle Financials for India - Version 12.2 and later
Information in this document applies to any platform.

Symptoms

TDS Invoices are generated for wrong amount and does not follow Rounding Rules at Regime setup. Also invoice amount on TDS invoices do not match with TDS amount in TDS Tax Details Form. It is expected that TDS amount should be generated based on Rounding Rules setup for the TDS Regime and same amount should appear at TDS Tax details form.

The issue can be reproduced at will with the following steps:
1. Create Payables Invoice for amount 2524.8 with single line item.
    India Local Payables-> Invoices -> Entry
2. Navigate to Tools-> TDS Tax details and apply TDS Section along with 2% TDS Tax Rate.
3. Close the Tax details form and on workbench click Action-> Validate.
4. Query the TDS invoices generated on Workbench and observe that invoice amount, 50 appears which is wrong as per below Regime rounding setup and calculation:
    Rounding basis: Taxable amount
    Rounded To: Nearest Rupee, Rounding Factor: 1
    Rounding basis: Tax amount
    Rounded To: Nearest Rupee, Rounding Factor: 1
    
    Taxable amount before rounding: 2524.8
    Taxable amount (Rounded to nearest rupee): 2525
    TDS Rate: 2%
    TDS amount before rounding: 2525 * .02 =  50.5
    TDS amount (Rounded to nearest rupee)= 51
5. Go to Tools-> TDS Tax details again and observe that Tax amount is 50.5 and does not match with TDS invoice amount.

Cause

To view full details, sign in with your My Oracle Support account.

Don't have a My Oracle Support account? Click to get started!


In this Document
Symptoms
Cause
Solution
References


My Oracle Support provides customers with access to over a million knowledge articles and a vibrant support community of peers and Oracle experts.