Basically, general instructions for withholding taxes SuiteAnswer #94468 is not applicable for India. The ACS team [with reference to case 5594776] has provided the following remarks:
- TDS is Withholding taxes used in India.
- Complete documentation for TDS can be found in the SuiteAnswer article #80280
- For default Section codes please go through SuiteAnswer #80286
As seen in documentation, this is currently available just for vendor transaction. TDS on sales transactions is not currently supported, and it is logged under the Enhancement # 537790 : Allow calculation of TDS (Tax Deducted at Source) for sales transaction (e.g. Customer Payments) and TCS (Tax Collected at Source) for both sales and purchase transaction.
So, TDS is already supported in India Localization, but this is available for Vendor Bills and not Customer Payments/Deposits. This is also documented in the SuiteAnswers article #80280 : Tax Deduction at Source (TDS), where it says that the India Localization Tax Engine SuiteApp enables us to calculate Tax Deduction at Source (TDS) on vendor bill transactions.