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 a355e5ddf44..2d15e6dba2a 100644
--- a/erpnext/accounts/doctype/tax_withholding_category/tax_withholding_category.py
+++ b/erpnext/accounts/doctype/tax_withholding_category/tax_withholding_category.py
@@ -551,6 +551,7 @@ def get_advance_tax_across_fiscal_year(tax_deducted_on_advances, tax_details):
 
 def get_tds_amount(ldc, parties, inv, tax_details, voucher_wise_amount):
 	tds_amount = 0
+<<<<<<< HEAD
 
 	pi_grand_total = 0
 	pi_base_net_total = 0
@@ -575,13 +576,25 @@ def get_tds_amount(ldc, parties, inv, tax_details, voucher_wise_amount):
 		"posting_date": ["between", (tax_details.from_date, tax_details.to_date)],
 		"tax_withholding_category": tax_details.get("tax_withholding_category"),
 		"company": inv.company,
+=======
+	invoice_filters = {
+		'name': ('in', vouchers), 
+		'docstatus': 1,
+		'apply_tds': 1
+>>>>>>> 4eb7c2a011 (fix: TDS calculation on net total (#27058))
 	}
 
 	consider_party_ledger_amt = cint(tax_details.consider_party_ledger_amount)
 
+<<<<<<< HEAD
 	if consider_party_ledger_amt:
 		pe_filters.pop("apply_tax_withholding_amount", None)
 		pe_filters.pop("tax_withholding_category", None)
+=======
+	if cint(tax_details.consider_party_ledger_amount):
+		invoice_filters.pop('apply_tds', None)
+		field = 'sum(grand_total)'
+>>>>>>> 4eb7c2a011 (fix: TDS calculation on net total (#27058))
 
 	# Get Amount via payment entry
 	payment_entries = frappe.db.get_all(
diff --git a/erpnext/accounts/doctype/tax_withholding_category/test_tax_withholding_category.py b/erpnext/accounts/doctype/tax_withholding_category/test_tax_withholding_category.py
index 303eeaa72d9..6a4dc06052b 100644
--- a/erpnext/accounts/doctype/tax_withholding_category/test_tax_withholding_category.py
+++ b/erpnext/accounts/doctype/tax_withholding_category/test_tax_withholding_category.py
@@ -294,10 +294,48 @@ class TestTaxWithholdingCategory(IntegrationTestCase):
 		for d in reversed(invoices):
 			d.cancel()
 
+<<<<<<< HEAD
 	def test_tcs_on_unallocated_advance_payments(self):
 		frappe.db.set_value(
 			"Customer", "Test TCS Customer", "tax_withholding_category", "Cumulative Threshold TCS"
 		)
+=======
+	def test_tds_calculation_on_net_total(self):
+		frappe.db.set_value("Supplier", "Test TDS Supplier4", "tax_withholding_category", "Cumulative Threshold TDS")
+		invoices = []
+
+		pi = create_purchase_invoice(supplier = "Test TDS Supplier4", rate = 20000, do_not_save=True)
+		pi.append('taxes', {
+			"category": "Total",
+			"charge_type": "Actual",
+			"account_head": '_Test Account VAT - _TC',
+			"cost_center": 'Main - _TC',
+			"tax_amount": 1000,
+			"description": "Test",
+			"add_deduct_tax": "Add"
+
+		})
+		pi.save()
+		pi.submit()
+		invoices.append(pi)
+
+		# Second Invoice will apply TDS checked
+		pi1 = create_purchase_invoice(supplier = "Test TDS Supplier4", rate = 20000)
+		pi1.submit()
+		invoices.append(pi1)
+
+		self.assertEqual(pi1.taxes[0].tax_amount, 4000)
+
+		#delete invoices to avoid clashing
+		for d in invoices:
+			d.cancel()
+
+def cancel_invoices():
+	purchase_invoices = frappe.get_all("Purchase Invoice", {
+		'supplier': ['in', ['Test TDS Supplier', 'Test TDS Supplier1', 'Test TDS Supplier2']],
+		'docstatus': 1
+	}, pluck="name")
+>>>>>>> 4eb7c2a011 (fix: TDS calculation on net total (#27058))
 
 		vouchers = []
 
@@ -996,6 +1034,7 @@ def create_payment_entry(**args):
 
 def create_records():
 	# create a new suppliers
+<<<<<<< HEAD
 	for name in [
 		"Test TDS Supplier",
 		"Test TDS Supplier1",
@@ -1009,6 +1048,10 @@ def create_records():
 		"Test LDC Supplier",
 	]:
 		if frappe.db.exists("Supplier", name):
+=======
+	for name in ['Test TDS Supplier', 'Test TDS Supplier1', 'Test TDS Supplier2', 'Test TDS Supplier3', 'Test TDS Supplier4']:
+		if frappe.db.exists('Supplier', name):
+>>>>>>> 4eb7c2a011 (fix: TDS calculation on net total (#27058))
 			continue
 
 		frappe.get_doc(