- Go to Setup > India Localization > TDS Tax Rate Rules.
- Click the Vendor Exemption subtab.
- Click New Vendor Exemption.
- In the Vendor Name field, select the vendor for this rule.
- In the Section Code field, select the section code for this rule.
- In the Particulars field, select the reason for tax exemption for this vendor.
- In the Certificate Number field, enter the TDS certificate number issued to the vendor.
- In the Schedule Type field, select a schedule type for this rule.
- If you selected Amount Range, complete the following fields:
- In the Effective From field, enter the start date of the tax rule’s validity.
- In the Valid Until field, enter the end date of the tax rule’s validity.
- Check the Retrospective box to use the rule to calculate tax retrospectively.
- On the Amount Rate Schedule sublist, in the From Amount and To Amount fields, enter the amount range for this rule.
- In the Rate field, enter a tax rate for this rule.
- If you selected Period Ranges, in the Period Rate Schedule sublist, complete the following fields:
- In the Effective From field, enter the start date of the validity of the rule.
- In the Valid Until field, enter the end date of the validity of the rule.
- In the Rate field, enter a tax rate for this rule.
- If you selected Amount Range, complete the following fields:
- Click Save.