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This article lists the steps for calculating Tax Deducted at Source (TDS) on various types of invoices using the Purchase order, Purchase journal, Blanket order, and Sales order pages.
Create a purchase order, purchase journal, purchase blanket order, or a sales order using the page listed. Enter the required details.
Select the Setup tab to view the nature of the assessee of the vendor or customer. This information is listed in the Nature of assessee field, under the Withholding tax group field group.
In the TDS group field, view or modify the default TDS group defined for the vendor or customer.
Note
The TCS group field isn't available when you select a TDS group in the TDS group field. TDS is calculated only if the Calculate withholding tax check box is selected for the vendor or customer on the All vendors or All customers page.
Create item lines on the Lines tab and enter the required details.
Select the Setup tab (line-level) to view or change the TDS group defined at the header-level. The TDS group is displayed in the TDS group field, which is under the Withholding tax group field group.
Select the Tax information tab and select alternate addresses that are set up for the company name that's displayed in this field. The company name is displayed in the Name field, which is under the Company information field group.
The TAN of the selected company name is displayed in the Tax Account Number (TAN) field, under the Withholding tax field group.
Select Withholding tax to open the Temporary withholding tax transactions page. View the following fields on the upper pane of the Temporary withholding tax transactions page.
Withholding tax amount in total - The total TDS calculated for the transaction for the TDS group.
Value - The total percentage used to calculate TDS for the transaction. The total percentage is based on the formula that is defined for TDS tax codes attached to the TDS group.
Adjusted withholding tax amount in total - The total adjusted TDS amount for all tax codes in the TDS group.
TDS - If selected, a TDS group is attached to the transaction.
The fields on the Overview, General, and Adjustment tabs on the Temporary withholding tax transactions page display the calculated TDS amount and adjusted TDS amount details for each TDS tax code attached to the TDS group.
Select Threshold to open the Threshold page. View the threshold limit defined for the TDS tax component attached to a specific TDS tax code on this page.
Select Formula designer to open the Formula designer page. View the formula that is defined for a specific TDS tax code on this page.
Post the invoice. The TDS amount calculated on purchase invoices is posted to the payable account and the TDS amount calculated on sales invoices is posted to the receivable account that is defined for each TDS tax code in the TDS group. The payable accounts or receivable accounts for TDS tax codes are defined on the Withholding tax codes page.
Select Inquiry button > Invoice > Posted withholding tax button to open the Withholding tax transactions page. You can view the total percentage used to calculate TDS for the transaction in the Value field.
The fields on the Overview, General, and Amount tabs on the Withholding tax transactions page display the information of TDS calculated for the transaction. View the TDS calculation information for each TDS tax code attached to the TDS group.