TDS Rates

Tax Deducted at Source (TDS) is applied to transactions when you deduct tax from the amount that must be paid to vendors and then send it to the government. Once TDS is enabled for your organization, you can manage the TDS rates required for your business.

Add TDS Rates

To add the required TDS rates:

• Go to Settings in the top right corner of the page.
• Select Taxes under Taxes & Compliance.
• In the Taxes pane, select TDS Rates.
• Fill in the TDS Name and the TDS Rate (%).
• Click Save.

Enable TDS for Vendors

Once TDS is enabled for your organization, you can enable TDS for your vendors. Here’s how:

• Go to Vendors on the left sidebar.
• If you’re adding a new vendor, click + New in the rop right corner and fill in the required details.
• If you want to enable TDS for an existing, select the required vendor and click Edit.
• In the Other Details tab, click Enable TDS for this Vendor.
• Click Save.

Apply TDS to Transactions

Once TDS is enabled for your organization, you’ve enabled TDS for vendors, here’s how you can apply TDS to transactions:

• Go to required module on the left sidebar.
• If you’re creating a new transaction, click + New in the rop right corner and fill in the required details.
• If you want to apply TDS to an existing transaction, select the required transaction and click Edit.
• In the Item Table, check Apply TDS next to the items for which TDS has to be deducted.
• If TDS Override is enabled, you can overwrite the system-applied TDS rates.
  • If TDS override preference is set at the item level, click the Edit icon next to TDS Amount in the Apply TDS column of the required item.
  • if the override preference is set at transaction level, click the Edit icon next to Total TDS Amount in the Total section.
  • Enter the required TDS amount and click Update. The system-applied TDS will be overwritten with the new TDS.
• Click Save.

View Associated Records

Once you’ve applied TDS rates to transactions, you can view the records associated the TDS rates. Here’s how:

• Go to Settings in the top right corner of the page.
• Select Taxes under Taxes & Compliance.
• In the Taxes pane, select TDS Rates.
• Hover over the required TDS rate and click the Dropdown icon.
• Select View Associate Records from the dropdown. A pane will appear on the right side where you can view the records associated with the TDS rate.

Edit TDS Rates

You can make changes to the TDS rates in your organization. Here’s how:

• Go to Settings in the top right corner of the page.
• Select Taxes under Taxes & Compliance.
• In the Taxes pane, select TDS Rates.
• Hover over the required TDS rate and click the Dropdown icon.
• Select Edit from the dropdown.
• Make the necessary changes and click Save.
• If this tax has already been applied in some transactions, you will be asked to confirm if you wish to update the new TDS rate in those transactions as well.

Mark TDS Rates as Default

You can mark a TDS rate as default when it’s the primary rate applicable to your transactions. Here’s how:

• Go to Settings in the top right corner of the page.
• Select Taxes under Taxes & Compliance.
• In the Taxes pane, select TDS Rates.
• Hover over the required TDS rate and click the Dropdown icon.
• Select Mark as Default from the dropdown. The TDS rate will be set as the default and automatically associated with vendors for whom you’ve enabled TDS. The Default tag will be added to the TDS rate.

Mark TDS Rates as Inactive

If your business doesn’t require certain TDS rates temporarily, you can mark them as inactive instead of deleting them. Here’s how:

• Go to Settings in the top right corner of the page.
• Select Taxes under Taxes & Compliance.
• In the Taxes pane, select TDS Rates.
• Hover over the required TDS rate and click the Dropdown icon.
• Select Mark as Inactive from the dropdown. The TDS rate will be marked as inactive, and you won’t be able to use it in transactions.

Mark TDS Rates as Active

If your business requires TDS rates that were previously marked as inactive, here’s how you can enable them again:

• Go to Settings in the top right corner of the page.
• Select Taxes under Taxes & Compliance.
• In the Taxes pane, select TDS Rates.
• Click the filter dropdown at the top and select Inactive.
• Hover over the required TDS rate and click the Dropdown icon.
• Select Mark as Active from the dropdown. The TDS rate will be marked as active, and you can use it in transactions now.

Delete TDS Rates

You can delete the TDS rates in your organization. Here’s how:

• Go to Settings in the top right corner of the page.
• Select Taxes under Taxes & Compliance.
• In the Taxes pane, select TDS Rates.
• Hover over the required TDS rate and click the Dropdown icon.
• Select Delete from the dropdown.
• Click OK to confirm.

TDS Groups

You can group multiple TDS rates together and apply them to your transactions. For example, if you need to charge a new TDS rate alongside your standard rate, you can create a TDS group that includes both rates to apply them to your bills.

The total TDS rate of a TDS group will be the sum of all the TDS rates that are grouped under it. To create a TDS group, ensure that there are at least two TDS rates in your organization.

To create a new tax group:

• Go to Settings in the top right corner of the page.
• Select Taxes under Taxes & Compliance.
• In the Taxes pane, select TDS Rates.
• Click + TDS Group Tax in the top right.
• Enter the TDS Group Tax Name, and select the TDS rates you want to associate with this TDS group in the Associate TDS Rates section.
• Click Save. To edit, view associated records, mark as active or inactive, set as default, and delete TDS groups, follow the same process as you would for individual TDS rates.

Disable TDS

To disable TDS for your organization:

• Go to Settings in the top right corner of the page.
• Select Taxes under Taxes & Compliance.
• In the Taxes pane, select TDS Rates.
• Uncheck Enable TDS Override for purchases transactions.
• Click Save.