How to: Set Up Nature of Collection Lines
Nature of Collection (NOC) lines link a customer or a party to different Tax Collected at Source (TCS) nature of collections. Nature of Deduction (NOD) lines link a vendor or a party to different Tax Deducted at Source (TDS) nature of deductions. You must set up either a TCS nature of collection lines or a TDS nature of deduction lines as one of the prerequisites to calculate TCS or TDS. For more information, see How to: Set Up Tax Collected at Source or How to: Set Up Tax Deducted at Source.
The following procedure describes how to set up nature of collection lines for TCS, but the same steps also apply to set up nature of deduction lines for TDS.
To set up nature of collection lines for tax collected at source
In the Search box, enter NOD/NOC List, and then choose the related link.
Select the required NOC, and on the Home tab, choose New.
On the General FastTab, fill in the fields as described in the following table.
Field Description Type
The TCS party type for the nature of collections.
No.
The unique identification code for the selected TCS party type.
Assesse Code
The unique identification code for the assessee associated with the TCS party type.
On the NOD Line Subform FastTab, fill in the fields as described in the following table.
Field Description TCS Party
Select to include the TCS party.
NOD/NOC
The TCS nature of deduction that is applicable for the selected TCS party. The NOC is selected based on the service provided by the TCS party.
Concessional Code
The TCS concessional code for the party, customer, or vendor. You can select the concessional code if concessional rates are applicable for the selected TCS party type.
Concessional Form No.
The concessional form number for the TCS party if concessional code is applicable.
Monthly Certificate
Select to specify that the TCS party has to be issued TCS certificates each month.
Threshold Overlook
Select to ignore the defined threshold amount when calculating TCS.
Surcharge Overlook
Select to ignore the defined surcharge amount when calculating TCS.
Choose the OK button.
See Also
Tasks
How to: Set Up Nature of Collections
How to: Set Up Nature of Deductions
How to: Set Up Tax Collected at Source
How to: Set Up Tax Deducted at Source