I have set up a Tax Withholding Category with the following parameters:
- Tax Withholding Rate: 1%
- Single Transaction Threshold: 50,000
- Cumulative Transaction Threshold: 2,00,000
After creating my first purchase invoice for 50,000, TDS was correctly deducted because it met the single threshold. However, when I created a second purchase invoice for 5,000, TDS was also deducted, despite the amount being below both thresholds.
Purchase Invoice - 1:
Purchase Invoice - 2:
Could anyone please help me to clarify why TDS was applied in this case?
Thanks in Advance!