Dear Team,
Currently, users are facing an issue related to TDS calculation while booking Purchase Invoices.
For Section 194J, the threshold limit is ₹50,000. In some scenarios, users need to calculate TDS on the first invoice itself; therefore, they enable the “Threshold Overlook” option, calculate TDS, and post the invoice.
Example (Threshold Overlook = Enabled, Same Vendor):
1st Invoice: ₹30,000
TDS @ 2% = ₹600 (calculated correctly)
2nd Invoice: ₹30,000
Expected TDS: ₹600 (only on the second invoice amount)
Current Issue:
When Threshold Overlook is enabled, the system recalculates TDS on the cumulative amount, resulting in:
1st Invoice TDS = ₹600
2nd Invoice TDS = ₹1,200 (calculated on ₹60,000 instead of ₹30,000)
Total TDS = ₹1,800 (incorrect)
This behavior was not occurring earlier and has been observed only recently (around one month ago).
Request:
Please suggest how we can proceed to resolve this issue or if any configuration/change is required in Business Central.
