Configure Withholding Tax Amounts and Period Range Deductions at Supplier and Supplier Site Level

You can configure the supplier withholding threshold for tax deducted at source for India by configuring withholding tax amounts and period range deductions at the supplier and supplier site level. You can apply such amounts and deductions during withholding tax calculation to comply with complex withholding tax regulations in India.

Follow these steps:

1. Enable India in Regional Localizations.
2. Create and enable a new lookup code ZX_37948616 for the existing ORA_ERP_CONTROLLED_CONFIG lookup type using the Manage Standard Lookups FSM task.
3. Verify the Withholding Tax Regime Buckets level. The withholding tax regime defined for India must have the Withholding Buckets Level set to First party tax registration number.
4. Enable the Allow withholding buckets based on exemptions option for the tax.
5. Define a new withholding tax rate for the lower rate.
6. Define a new tax exemption to record the certificate details:
   1. Enter Start Date and End Date based on the certificate's validity period. Enter the Certificate Number.
   2. Choose Exemption Rate Type as Special rate code.
   3. Select the new tax rate defined for the lower rate in the prior step.
   4. Click Save.

   After configuring the supplier withholding threshold for tax deducted at source for India, you can calculate TDS (Tax Deducted at Source) in India accurately and benefit from lower deduction rates. This also helps reduce the setup effort and improve performance.