TDS Rates
TDS (Tax Deducted at Source) is a withholding tax mechanism where the buyer deducts a specified percentage from the payment to the vendor and remits it to the tax authority. In Zoho Spend, TDS rates can be assigned to individual vendors and are deducted automatically when bills are created for those vendors.
The TDS Rates tab is only visible after you enable TDS in Tax Settings.
Default TDS Rates
The following TDS rates are available by default once TDS is enabled:
| TDS Name | Rate (%) | Tax Type |
|---|---|---|
| Income | 1.25 | Income Tax |
| Local Tax | 10 | Local Tax |
| Special Tax on Production and Services | 10 | Special Tax on Production and Services |
| VAT | 10.6666 | Value Added Tax |
Add a TDS Rate
To add a new TDS rate:
- Go to Settings on the left sidebar.
(OR)
Click Settings in the top right corner of the page. - Click Taxes under Taxes & Compliance.
- In the Taxes pane, click TDS Rates.
- Click + New Rate in the top right corner.
- Enter the following details:
| Field | Description |
|---|---|
| TDS Name* | A name to identify this TDS rate. |
| TDS Rate (%)* | The percentage to be deducted at source. |
| Tax Type* | Select the type: Income Tax, Value Added Tax, Special Tax on Production and Services, or Local Tax. |
- Click Save.
Mark a TDS Rate as Inactive or Default
To mark a TDS rate as inactive or set it as the default:
- Go to Settings on the left sidebar.
(OR)
Click Settings in the top right corner of the page. - Click Taxes under Taxes & Compliance.
- In the Taxes pane, click TDS Rates.
- Hover over the TDS rate and click the Dropdown icon at the right end of the row.
- Select Mark as Inactive to deactivate the rate, or Mark as Default to set it as the default TDS rate for new vendors.
To restore an inactive TDS rate:
- Go to Settings on the left sidebar.
(OR)
Click Settings in the top right corner of the page. - Click Taxes under Taxes & Compliance.
- In the Taxes pane, click TDS Rates.
- Click the filter dropdown and select Inactive.
- Hover over the TDS rate and click the Dropdown icon.
- Select Mark as Active.
View Associated Records
To view the vendors or transactions associated with a TDS rate:
- Go to Settings on the left sidebar.
(OR)
Click Settings in the top right corner of the page. - Click Taxes under Taxes & Compliance.
- In the Taxes pane, click TDS Rates.
- Hover over the TDS rate and click the Dropdown icon at the right end of the row.
- Select View Associated Records.
TDS Group Tax
A TDS Group Tax lets you combine multiple TDS rates and apply them together to a vendor.
Note: A TDS Group Tax must include at least two TDS rates.
Create a TDS Group Tax
To create a TDS Group Tax:
- Go to Settings on the left sidebar.
(OR)
Click Settings in the top right corner of the page. - Click Taxes under Taxes & Compliance.
- In the Taxes pane, click TDS Rates.
- Click + TDS Group Tax in the top right corner.
- Enter the TDS Group Tax Name.
- Under Associate Taxes, select the TDS rates to include by checking the box next to each rate.
- Drag the rates using the handle on the right to reorder them if needed.
- Click Save.
You can also edit, delete, view associated records, and mark a TDS Group Tax as inactive or active. To perform these actions, hover over the TDS Group Tax and click the Dropdown icon, then select the relevant option.