Section 194Q – Purchase of Goods When configuring the TDS tax rule for Section 194Q, the threshold should be set at ₹50 lakh on a yearly basis, and the “Retrospective” option must be set to “NO” for vendors with PAN. This is because, under government regulations, the vendor is not liable to deduct TDS on… Continue reading TDS rule for 194Q
Tag: TDS Calculation
Verify TDS Amount Page
The Verify TDS Amount page is designed to assist administrators in reviewing, comparing, and correcting TDS calculations. Through this feature, the SuiteApp enables users to search for vendor bills using filters such as subsidiary, vendor, fiscal period, and section code. It then performs an automatic calculation of the exact TDS that should have been collected… Continue reading Verify TDS Amount Page
Updated Preview Tax
In NetSuite, end users can now preview TDS tax as well. Previously, the Indian localization bundle only displayed GST when the standard preview tax button was clicked. With the latest update, TDS is now included in the preview options. Previously clients had to use scripts to show the end user how much TDS would be… Continue reading Updated Preview Tax
TDS Section 194 Q – Applicability in NetSuite
Typically, all TDS sections include an amount slab, and if this limit is exceeded, TDS must be deducted from the very first rupee. This is why, in NetSuite, we check the Retrospective Check box. However, in the case of TDS Section 194Q, retrospective TDS deduction is not necessary; instead, deduction is required only on the… Continue reading TDS Section 194 Q – Applicability in NetSuite
TDS Threshhold calculation – example
User created Tax Deduction at Source Rule (1.5%) with a Document Threshold of 30,000.00 and Year Threshold of 100,000.00, and wants to know how TDS Liability will be calculated when Vendor Bills with the following amounts are raised: Bill 1 = 4,000.00 Bill 2 = 15,000.00 Bill 3 = 40,000.00 (changed to 25,000.00 after Bill… Continue reading TDS Threshhold calculation – example
TDS Threshold calculation in NetSuite
Threshold Calculation Based on Date Created: Currently, the TDS calculation is determined using the date of creation of the transaction rather than the transaction date (trandate). This means that if a backdated transaction is created (e.g., an April bill entered in June), it will be considered for TDS threshold calculation based on the June date… Continue reading TDS Threshold calculation in NetSuite
Resolving TDS Calculation Error on Bill
Scenario: When trying to calculate TDS after creating and approving a bill, the following error occurs: “Tax Calculation Plugin error due to no applicable tax deduction at source rule was found for this bill. Please go to Setup > Accounting > India Tax Rate Rules for TDS to set up a new tax rate rule… Continue reading Resolving TDS Calculation Error on Bill
TDS Calculation based on Tax rule
TDS Calculation Based on Tax Rule TDS is calculated based on the tax rule applicable to the bill. The following combinations are available to set up tax rules: Tax rule without threshold basis – When no threshold basis is set for a rule, TDS is calculated based on the section code, vendor type, effective period, and… Continue reading TDS Calculation based on Tax rule
India Accumulated Tax Buckets for TDS
India accumulated tax buckets is a custom record that contains the tax data of a bucket. A bucket is a combination of a TAN, section code, vendor, and accounting period. The India Accumulated Tax Bucket record contains the accumulated net amount and tax amount of a bucket. When you create, edit, or delete a vendor… Continue reading India Accumulated Tax Buckets for TDS
Applying TDS on Vendor Bills
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… Continue reading Applying TDS on Vendor Bills