3740877 - TDS deduction under section 194Q occurring blow threshold limit during supplier invoice posting

TDS under Section 194Q is being deducted on supplier invoices even though the accumulated amount has not yet exceeded the defined exemption threshold limit.

SAP S/4HANA Cloud Public Edition

At the Business Partner level, the TAN-based exemption was maintained with an incorrect "Exemption Number" for TDS under Section 194Q.

1. Open the Business Partner and navigate to the "Supplier: Country-Spec. Enh." tab.
2. Locate to "India: TAN-Based Exemption" the entry related to TDS on purchase of goods under Section 194Q.
3. Update the Exemption Number to "TDSU/S194Q".
4. Save the changes.

Note: If the accumulated amount exceeds the exemption threshold limit, TDS will be calculated based on the configured tax type and tax code during both invoice and payment postings.

• Maintaining TAN Exemption Reasons for Suppliers
• 3567729 - PAN Number is not available when trying to create supplier invoice_

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