Understanding TDS and WCT Concessional Rates

Use the TDS Concessional Rate Maintenance program (P75I15A) to track the concessional limit amount for transports. This program deducts the tax at the concessional rate when the total amount of invoices from a particular contractor exceeds the limit amount defined for concessional rates.

When you set up a concessional rate, you must specify whether it is for TDS or WCT in the TDS Type and G/L Class fields on the TDS Supplier Specific Concessional Supplier Rate Master Revisions form.

The system applies the concessional rate if the TDS or WCT amount for a supplier does not exceed the ceiling limit. If the TDS or WCT exceeds the ceiling limit, then the system applies the standard rate that is set up in the TDS Rate Master Maintenance program (P75I10A). For example, if you set up the concessional rate as 2 and the ceiling limit as 1000000, the system will apply 2% concessional rate till the invoice amount does not exceed 1000000 regardless of the number of transactions.

Each company can define different concessional rates for its suppliers. Unlike TDS and WCT rates, a company need not define a concessional rate that is common for all suppliers.