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Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / TDS U/s 194C is Not Ca...
Small and medium business | Business Central, N...
Answered

TDS U/s 194C is Not Calculated even though the Threshold Limit is Overlooked.

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Posted on by Jainam M. Kothari 12,132 Super User 2025 Season 2

Hello Everyone,

Has anyone encountered an issue where TDS is not being calculated on purchase transactions due to Microsoft updates on use cases? I have enabled the "Threshold Overlook" option under the TDS Allowed section in the Vendor Card, yet the TDS amount is not being applied.

For example:

  • Purchase Transaction Value: ₹10,000
  • TDS Applicable: Yes (Configured in Vendor Card)
  • TDS Nature of Deduction: Assigned in Purchase Lines
  • Threshold Overlook: Enabled
  • Issue: TDS is not being calculated.

However, when the Purchase Transaction Value exceeds the Per Contract Value (e.g., ₹35,000 when Per Contract Value is ₹30,000), TDS is successfully applied.

Could someone help me troubleshoot and resolve this issue?

Categories:
Dynamics 365 Business Central
I have the same question (0)
  • Raghav3022 Profile Picture
    Raghav3022 214 on at
    TDS U/s 194C is Not Calculated even though the Threshold Limit is Overlooked.
    I encountered the same issue recently. TDS threshold overlook is only considering the TDS threshold limit and not the per contract value. Please mention if you find a solution 
  • Gerardo Rentería García Profile Picture
    Gerardo Rentería Ga... 23,574 Most Valuable Professional on at
    TDS U/s 194C is Not Calculated even though the Threshold Limit is Overlooked.

    Hi, good day
    I hope this can help you, and give you some hints.

    Threshold Overlook field impact in NAV & MSDYN365BC [NOD-TDS]

    How to use Same TDS Section for Multiple Use Cases in D365BC

    Best Regards
    Gerardo

  • Suggested answer
    Khushbu Rajvi. Profile Picture
    Khushbu Rajvi. 19,160 Super User 2025 Season 2 on at
    TDS U/s 194C is Not Calculated even though the Threshold Limit is Overlooked.
     
  • Verified answer
    Jainam M. Kothari Profile Picture
    Jainam M. Kothari 12,132 Super User 2025 Season 2 on at
    TDS U/s 194C is Not Calculated even though the Threshold Limit is Overlooked.
    Hello Everyone,
     
    Yes Exactly this is happens after the Microsoft Update as on 17-01-2025. 
     
    So you can create New TDS Section Code which is the Copy of Existing TDS Section. Mention Only the Threshold Limit and Don't Mention the "Per Contract Value" in TDS Setups.
     
    And then make a transactions with New TDS Section with TDS Overlook.
     
    Then TDS will be Applied.

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