Calculating Tax Amounts for TDS and WCT

Run the Calculate TDS and Calculate Withholding– WCTDS reports to calculate the tax for vouchers, that are defined to calculate withholding by invoice. When the system calculates TDS and WCT, it accesses the tax definition (percentages, limits, and so on) by line, and then groups the lines by type.

• Select Daily Processing (G75ITDS1), calculate TDS.

• Select Daily Processing (G75IWCTDS1), calculate Withholding–WCTDS.

When you run the Calculate TDS report, the system checks for the Permanent Account Number (PAN) of the supplier in the F75I010 table. If the table does not contain the PAN, the system applies a penalty. The system calculates the penalty rate based on the higher value of the penalty rate and the actual TDS rate defined in the F75I10A table. The system stores the original TDS rate and the penalty rate in the TDS File Additional Info table (F75I104). When the penalty rate is higher than the TDS rate, the system displays a mark of penalty on the report. If you want to update the PAN after running the Calculate TDS report and recalculate TDS without penalty, you need to delete or void the voucher, add a new voucher, and then generate TDS Taxes again.

The Calculate TDS report also applies rounding on the taxable amount and the tax amount. The report rounds the taxable amount to the nearest value of 100 as defined in the F75I10A table, but displays the gross amount as the amount prior to rounding. It uses the rounded amount only for calculations. The system applies tax rounding based on the value defined in the F75I005 table for tax type TDS, and tax regime *ALL to the tax amount arrived by summing the values in TDS, surcharge, CESS, and HCESS. The system stores the taxable rounding, tax rounding, rounded taxable amount, and non rounded tax amount in the F75I104 table, and the actual gross amount and the rounded tax amount in the F75I100 table.

(Release 9.2 Update) The Calculate TDS report calculates TDS on purchase of goods for only those vouchers that have the invoice date greater than the effective date specified in the Effective Legislative Date for TDS Calculation on Purchase of Goods processing option of the report.