After a vendor bill is approved, the India Localization SuiteTax Engine automatically calculates the Tax Deduction at Source (TDS) on the bill. TDS is calculated on each line item based on the default section code and the TDS tax rule that applies to an item.
When you create, edit, or delete a bill, the SuiteApp stores the tax information in the India Accumulated Tax Bucket record. The India Audit Trial subtab on the India Accumulated Tax Buckets page lists any change in taxes due to creation, modification, or deletion of a bill.
In addition, the SuiteApp creates a TI Journal to offset the change in TDS tax liability when the accumulated bill value exceeds the TDS threshold levels.
To calculate TDS successfully, the Standard Journal Entry form must be active.