TDS tax rate rules are used to calculate the tax deduction at source in transactions. India localization suite tax engine is needed for getting TDS calculation in transactions. TDS tax rate rules needed to set up manually or by CSV import. Transaction is using TDS tax rate rules for tax calculations. For setting up of TDS tax rate rule:-
Go to,
Set up>Tax>TDS Tax rate rule
-Tax deduction at source
Create new tax deduction at source tax rate rule type.
Name:-Give the name of tax rate rule
Section code:-Select the section code for tax rate rule
Effective from:-Give the date from which this tax rate rule is needed to use in transactions
Valid until:-Select the date till which the tax rate rule is needed to use.
Non-resident:-Check the box if the tax rate rule is for NRI.
Rate:- Type the percentage rate of tax rate rule.
Amount based:- If the tax rate rule is used based on the amount , select the amount from which the tax is needed to calculate in transactions.
Save the tax deduction at source.
-Education cess
Create the education cess for calculation of TDS for Non-residents.
Rate:- Give the rate of education cess.
Effective from:-Give the date from which this education cess is needed to use in transactions
Valid until:-Select the date till which the education cess is needed to use.
Save the rule.
-Secondary education cess
Rate:- Give the rate of education cess.
Effective from:-Give the date from which this secondary education cess is needed to use in transactions
Valid until:-Select the date till which the secondary education cess is needed to use.
Save the rule.
-Surcharge
Rate:- Give the rate of education cess.
Effective from:-Give the date from which this education cess is needed to use in transactions
Valid until:-Select the date till which the education cess is needed to use.
Amount based:- Select the amount limit till which the particular vendor has an exemption of TDS.
Save the rule.