Edit

Share via

TDS group, PAN, and TAN information setup for vendors and customers

  • Article

This article explains how to set up information about the Tax Deducted at Source (TDS) group, permanent account number (PAN), and tax account number (TAN) for vendors and customers.

  1. Go to Accounts payable > Vendors > All vendors or Accounts receivable > Customers > All customers.

    [All vendors page.]

  2. On the Action Pane, select New to create a vendor or customer, and enter the required details. Alternatively, select an existing vendor or customer.

  3. On the Invoice and delivery FastTab, in the Withholding tax section, set the Calculate withholding tax option to Yes to calculate withholding tax, TDS, or Tax Collected at Source (TCS) for the vendor or customer.

  4. TDS for a purchase invoice is calculated based on the default TDS group that is defined for the vendor or customer. In the TDS group field, select the default TDS group.

    Note

    When you select a TDS group in the TDS group field, the Withholding tax group and TCS group fields become unavailable.

  5. On the Tax information FastTab, in the PAN information section, in the Status field, select the status of the permanent account number for the vendor or customer:

    • Not available – The vendor or customer doesn't have a PAN.
    • Received – The vendor or customer has a PAN.
    • Applied – The vendor or customer has applied for a PAN.
    • Invalid – The vendor or customer has a PAN, but it isn't valid.

  6. If you selected Received in the Status field to indicate that the vendor or customer has a PAN, enter the PAN in the Number field. The PAN must consist of five alphabetic characters, then four numeric characters, and then one alphabetic character. Here is an example: ABCDE1260A.

  7. If you selected Applied in the Status field to indicate that the vendor or customer has applied for PAN, enter the reference number in the Reference number field.

  8. In the Nature of assessee field, select the nature of assessee category that the vendor or customer belongs to:

    • Company
    • HUF
    • Firm
    • Individual
    • AOP
    • BOI
    • Local authority
    • Others

    [Tax information FastTab.]

  9. On the Action Pane, on the Vendor tab, in the Registration group, select Registration IDs to open the Manage addresses page.

  10. On the Manage addresses page, on the Tax information FastTab, select Add or Edit to open the Manage tax information page, where you can maintain the tax registration entry.

  11. On the Manage tax information page, on the Withholding tax FastTab, in the Tax Account Number (TAN) field, enter the TAN. The TAN must consist of four alphabetic characters, then five numeric characters, and then one alphabetic character. Here is an example: AFGH54821T.

  12. Close the page.