Set the TDS parameters

This article explains how to set parameters to activate Tax Deducted at Source (TDS) functionality in specified transactions. This is a necessary step to use the Tax Deducted at Source TDS feature.

1. Go to General ledger > Ledger setup > General ledger parameters.

2. On the Direct taxes tab, in the Tax Deducted at Source section, set the Activate TDS option to Yes to activate the TDS functionality, and the pages and fields that are used for it.

3. Set the Invoice option to Yes to activate the fields that are used to calculate and deduct TDS at the invoice level.

4. Set the Payment option to Yes to activate the fields that are used to calculate and deduct TDS at the payment level.

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5. On the Number sequences tab, find the row where the Reference field is set to Withholding tax payment. In the Number sequence code field for the row, select the number sequence code. The number sequence code is used to generate voucher numbers for the periodic TDS settlement process.

   Note

   To run the periodic TDS settlement process, go to Tax > Declarations > Withholding tax > Withholding tax payment.

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6. Close the page.