Create TDS tax rate rules

  1. Go to Setup > India Localization > TDS Tax Rate Rules.
  2. Click the Tax Deduction at Source subtab.
  3. Click New Tax Deduction at Source.
  4. Enter a unique name for the TDS tax rule.
  5. In the Section Code field, select the section code that applies to the rule.
  6. In the Vendor Type field, select the vendor type for this rule.
  7. In the Effective From field, enter the start date of the tax rule’s validity.
  8. In the Valid Until field, enter the end date of the tax rule’s validity.
  9. Enter the appropriate tax rate to apply to the rule.
  10. In the Threshold Basis column, set the threshold level only if the selected section code has threshold basis:
    1. Year – TDS is calculated when the accumulated bill amount is equal to or greater than the year threshold amount. Until the accumulated bill amount is equal to or greater than the year threshold amount, the SuiteApp calculates TDS based on the document threshold amount.
      1. Threshold Amount – Enter the year threshold amount.
      2. Retrospective – If you check the box, retrospective tax calculation is set. If you clear the box, nonretrospective tax calculation is set. By default, the box is checked. However, you cannot set non-retrospective calculation for a tax rule if both year and document threshold bases apply to the rule.
    2. Document – TDS is calculated when a particular bill amount is equal to or greater than the document threshold amount.By default, retrospective calculation is set for a tax rule when setting up document threshold basis.
      1. Threshold Amount – Enter the document threshold amount.
  11. Click Save.

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