Dear Gurus,
I have a vendor who is both a sub contracting and a supplier. Sometimes he supplies material and sometime he subcontracts for me. TDS is deducted only for subcontracting invoices and should not be deducted for material supply invoices. but how do i make the settings so that during MIRO,TDS should be deducted only when it is a sub contracting invoice and should not deduct TDS when it is a material supply vendor invoice.
I have already suggested below Solutions but Client is not satisfied
Answer
- We can look at maintaining two vendors, one for material & other for works contract or else you need to put zero in the withholding tax level for material supplies.
- Since the same vendor supplies both taxable and non taxable services, it becomes all the more complex. We controlled it using a validation. IF the expense are charged to GL accounts of goods, ensure that the TDS code is made nil at the time of invoice verification else apply the TDS code as specified in the master.
Still i am Struggling
Regards
Suraj