TDS calculate on base value- in FB60

Question

Dear Experts
My client has a requirement for TDS calculation in FB60 vendor Invoice.
Scenario:
A vendor issues an invoice for Rs 100000 with 12.36% service tax, where the total invoice amount is 112360.
As per their requirement, the client will enter the whole amount i.e 112360 in the amount filed in FB60 screen which has to be fully posted in the expenses GL.
As per the normal TDS calculation the TDS will be calculated for 112360. (Value 11236) But the client wants TDS to be calculated only for base amount i.e for 100000 (Value 10000) and not on the total amount.
Condition: The base amount should not be entered in the With holding tax field manually. The system has to automatically calculate the TDS for Base amount alone and no manual intervention is done.
The vendor invoice amount and the TDS % will vary for different invoices. But the TDS has to be calculated only on the base amount without manual intervention.
Kindly provide me ideas and solutions on what can be done for the above issue.
Accounting Entry :: FB60 :: Expenses Dr  100000
                                                St.Input tax Dr 12360
                                                          Vendor      Cr   111360
                                                          TDs            Cr   1000

Answer 1

Hi Shivakrishna,
Mani Kumar have given the right solution. But by this solution, system will take only base amount for calculation of TDS deduction. It will not consider the service tax amount as well as other type of tax amount like VAT or Excise.
But if you want to include the Excise and VAT in the base amount calculation, then go with Modified Net Amount radio button instead of Net amount radio button. In this case you need to maintain processing keys also against the TDS code.
Before doing any change, pl discuss with Business. Because as per my understanding of new circular, TDS should not be calculate on Service Tax amount only.
Regards,
Ankit Agarwal