Assigning Tax Accounts to Tax Deduction at Source Tax Types
Tax Deduction at Source (TDS) tax type determines where TDS tax is tracked in the chart of accounts. We must specify the tax accounts to which NetSuite should post the collection or payment of tax.
The India Localization Tax Engine includes four tax types for TDS calculation:
- Tax Deduction at Source
- TDS Education Cess
- TDS Secondary Education Cess
- TDS Surcharge
Note: The India Localization SuiteTax Engine can only use the four default tax types. Any tax type created outside of the SuiteApp is not supported.
To specify the tax accounts for a nexus on an existing tax type:
- Go to Setup > Accounting > Tax Type.
- Click Edit next to the tax type we want to update.
- In the Name field, edit the name as required.
- Click the Accounts subtab and select values for the following fields:
- Nexus – Select the nexus that this tax type applies to.
- Tax On Purchase – Select the account where NetSuite will post TDS tax liability on purchase transactions.
- Click Save.