We noticed that the system is computing TDS on purchase returns, Debit notes for Suppliers after crossing the 50 Lakh threshold when it should only deduct TDS for purchases. System allows the user to manually unselect the apply tax withholding check box to not compute the TDS. However, this will lead to erroneous TDS computations as users are prone to make mistakes. This needs to be addressed by the system automatically.
In Sales invoice there is no provision to unselect the apply withholding tax check box and system is defaulting the tax withholding category defined in the customer master which is not editable in the transactions screen and hence leads to TCS being computed in the case of Sales Return and Credit Notes, and Debit Note which is not to be done once threshold crossed. However this needs to be addressed by the system automatically.
If any solution is available to address the above in version 15 please share the solution. If not we request this addressed at the erliest as it is statutory requirement in India.