diff --git a/erpnext/accounts/doctype/tax_withholding_category/tax_withholding_category.py b/erpnext/accounts/doctype/tax_withholding_category/tax_withholding_category.py
index f6a7218d601..05ecbc9677b 100644
--- a/erpnext/accounts/doctype/tax_withholding_category/tax_withholding_category.py
+++ b/erpnext/accounts/doctype/tax_withholding_category/tax_withholding_category.py
@@ -163,7 +163,7 @@ def get_tds_amount(suppliers, net_total, company, tax_details, fiscal_year_detai
 		debit_note_amount = get_debit_note_amount(suppliers, year_start_date, year_end_date)
 		supplier_credit_amount -= debit_note_amount
 
-		if ((tax_details.get('threshold', 0) and supplier_credit_amount >= tax_details.threshold)
+		if ((tax_details.get('threshold', 0) and net_total >= tax_details.threshold)
 			or (tax_details.get('cumulative_threshold', 0) and supplier_credit_amount >= tax_details.cumulative_threshold)):
 
 			if ldc and is_valid_certificate(ldc.valid_from, ldc.valid_upto, posting_date, tds_deducted, net_total,