Entering a TDS or WCT Rate

Access the TDS Rate Revision form.

Beginning Date and End Date

Enter a date range for which the TDS or WCT tax rate is effective.

TDS Group

Enter a user-defined code from UDC table 75I/TG (TDS Group) that designates the TDS or WCT group. Groups are stored in the TDS Rate Maintenance table (F75I10A). Examples are:

B: Brokerage

C: Contractor

D: Dividend

I: Interest

R: Rent

Applicability of TDS

Enter a user-defined code from UDC table 75I/AT. The TDS rate is either as per the Income Tax (IT) Act, or as per the Double Taxation Avoidance Agreements (DTAA) Act. Values are:

A: If TDS rate is as per Income Tax Act

B: If TDS rate is as per DTAA

Origin State

Enter a value from UDC table 00/S to indicate the state where the voucher is generated. Examples are:

AM: Amazonas

AP: Andhra Pradesh

BA: Bangalore

DB1:Durban

TDS Rate

Enter the TDS or WCT percentage rate. TDS or WCT percentage rates are calculated based on the rates fixed by the Government. These rates are stored in the TDS Rate Maintenance table (F75I10A) for every group.

Surcharge Rate

Enter the surcharge percentage rate. You calculate the surcharge percentage rates based on the rates fixed by the Government. These rates are stored in the TDS Rate Maintenance table (F75I10A) for every group.

Ceiling Limit by Year

Enter the ceiling rate limit for deducting TDS or WCT. This is the yearly ceiling rate as per the Income Tax Act. Beyond this limit, TDS and WCT laws are applicable. A TDS or WCT rate is applied if the amount exceeds the ceiling limit. The rate is not applied if the amount is below the limit.

Cess Rate

Enter the cess percentage rate to be applied above the TDS or WCT rate percentage and surcharge rate percentage.

Surcharge Ceiling

Enter the ceiling rate limit for deducting the TDS or WCT surcharge. This is the yearly ceiling rate as per revised Income Tax Act. If you leave this field blank, the system calculates the TDS or WCT surcharge for the transaction regardless of whether the amount is above or below the limit.

Ceiling Limit/Invoice

Enter the limit for deducting basic TDS and WCT. This is the limit when you define the threshold by invoice. If you leave this field blank, the system calculates the TDS and WCT surcharge for the transaction regardless of whether the amount is above or below the limit.

Penalty Rate

Enter the penalty rate to be charged as TDS rate when the PAN is not available for the supplier.

Taxable Rounding

Enter the value to which the taxable amount should be rounded for the purpose of calculation of tax.

Exclude Service Tax

Specify whether to exclude service tax during TDS calculation.

0: The system does not exclude service tax during TDS calculation.

1: The system excludes service tax during TDS calculation.

Payment Terms

Enter a code that specifies the terms of payment, including the percentage of discount available if the invoice is paid by the discount due date. Use a blank code to indicate the most frequently-used payment term. You define each type of payment term on the Payment Terms Revisions form.

Examples of payment terms include:

Blank: Net 15

001: 1/10 net 30

002: 2/10 net 30

003: Due on the 10th day of every month

006: Due upon receipt

This code prints on customer invoices.

G/L Offset

Enter TDS or WCT to indicate the tax type.