Understanding TDS and WCT Rates

You set up TDS rates and WCT rates based on beginning and ending dates and tax type. The tax types for TDS and WCT are set up in UDC table 75I/TY.

Use the TDS Rate Master Maintenance program (P75I10A) to set up rates, rate percentages, ceiling limit amounts, and other attributes for both TDS and WCT withholding. When you set up a rate, you specify whether it is for TDS or WCT in the TDS Type and G/L Offset fields on the TDS Rate Revision form. You must set up a rate that is common to all suppliers.

You can specify if the TDS and WCT limit amount is determined by invoice or year. The system uses the limit amount to determine whether to calculate withholding. For WCT withholding, you also enter the name of the state because the withholding calculation depends on the state where the voucher is generated.

The TDS Rate Master Maintenance program updates the setup information in the TDS Rate Master Maintenance file (F75I10A).