## Documentation Index

Access the complete documentation index at:
https://www.zoho.com/en-fr/books/kb/llms.txt

Use this file to discover all available documentation pages before proceeding.

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# How do I enable TDS to apply for invoice / bill transactions?

TDS stands for _Tax Deducted at Source_, where a certain percentage of the payment is deducted at the time of the transaction and remitted to the government by the payer.

In Zoho Books, you can enable TDS for your customers and vendors by:

*   Go to **Settings** at the top right corner of the page.
*   Select **Taxes** under _Taxes & Compliance_.
*   In the _Taxes_ pane, select **Tax Settings**.
*   Check the **Enable TDS** box.
*   Select **Customers**, **Vendors,** or **Customers and Vendors** from the _Support TDS For_ dropdown to enable TDS.
*   Click **Save**.

You can create [TDS rates](https://www.zoho.com/books/kb/taxes/create-tds.html) for your customers and vendors in Zoho Books.

**Note:** To enable TDS for a specific contact, go to the TDS section while editing or creating a contact, and check the _Enable TDS for this Customer/Vendor_ box.

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