Tax Withholding Category rate set to 10% but showing 0% in Purchase Invoice

ERPNext
1

Hi Team,

All settings seem correct, but I’m facing an issue with Tax Withholding (TDS) in Purchase Invoice.

I have configured a Tax Withholding Category with a tax rate of 10%.
When I select this category in the Purchase Invoice:

  • The TDS amount is calculated correctly

  • But in Purchase Taxes and Charges, the Tax Rate column shows 0 for the TDS row

This is confusing because the configured rate is 10%, but the UI always shows 0 even though the deduction is accurate.

Questions:

  1. Why does show Tax Rate = 0 for TDS even when the withholding rate is set to 10%?

  2. Is this the expected behavior for Tax Withholding?

  3. Is there any way to display the actual TDS percentage in the Purchase Invoice UI for clarity?

Thanks in advance.

2

Try this might help
Also do you have more than one tax rate?

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3

TDS is always added as Actual with a directly calculated amount. The rate is not shown in the tax rate field.

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4

@asieftejani

It is off topic.

5

In Purchase Invoice, TDS amount is calculated correctly but Tax Rate shows 0.

  1. How can I identify which TDS rate (e.g. 2%, 10%) is applied for a Purchase Invoice?

  2. What is the standard way to configure different TDS rates for different suppliers ?

6

@ahsantareen
Please advice how is it off topic?
He asked about a tax issue and I pointed him towards relevant frappe tax docs and asked him a relevant question - i dont see that as off topic

7

Thank You @asieftejani

One should always be open to Learning and that is good in your case.

WHT is different than VAT. You are referring to item tax template which only works with VAT recording but not with holding tax (income tax deducted at source).

I will request again to test your cases before hand.

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8

@ahsantareen Okay thanks for the clarification

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9
  • You can identify rate based on the Tax Withholding Category.
  • To configure different TDS rates for different suppliers by creating different Tax Withholding Category.

In v16, there are some changes.

  • TDS Details are available at the doc level.
  • You can specify a different rate for the same tax withholding category using the tax withholding group.