Module: Procurement > Purchase Invoice
Referece Ticket id: https://care.ginesys.in/a/tickets/186635
TDS is deducted while re-releasing old Purchase Invoices on which TDS wasn't applicable originally.
On purchase of goods from Vendor X, TDS at rate of 0.01% is applicable when the transaction amount exceeds 50 lakhs. The purchase bills for April'24 amounted to Rs. 48 lakhs, and in May'24, the cumulative bill amount crossed Rs. 50 lakhs. Now suppose in the month of May'24 user reverts backdated bills of April/May on which TDS was not liable to be deducted (bcoz bill amount didnot exceeds 50 lakhs). On release of reverted bill, Auto TDS Journal generated.
This Auto TDS Journal generation is incorrect because there lies no TDS liability on bills upto 50 lakhs.
There may be a situation where 5 month backdated bills might be reverted. User might have already filed TDS return for the same. Mere reversal & release of the same bill due to error/some changes doesnot create a liability for TDS.
The system is checking the total purchase value for the vendor as on the date of reversal which is incorrect.Rather, total purchase value for the vendor should be calculated on the entry date of the bill. (Now whether TDS would be deducted on backdated entry of the new PI's would be a point and needs to be thought when detailed analysis and solutioning will be done)