1. Country-Specific Features
  2. India Help Topics
  3. India Localization SuiteTax Engine
  4. Tax Collection at Source
  5. Setting up Tax Collection at Source

Setting up Tax Collection at Source

Set up TCS by configuring eligible customer and item records, and creating TCS tax rate rules. To finish setting up TCS,, perform the following steps in order:

  1. Configuring Customer Records that are Eligible for TCS

  2. Configuring Item Records for TCS

  3. Creating TCS Tax Rate Rules

TCS Subsection Codes

The India Localization SuiteTax Engine SuiteApp supports the following subsection codes under TCS:

The SuiteApp includes default challan codes for each subsection code. In the global Search field, enter TCS Subsection to view the list of subsection codes, and enter TCS Challan to view the list of challan codes.

You can't create section or subsection codes, but you can create challan codes by following the steps in To create a new challan code:.

Configuring Customer Records that are Eligible for TCS

You must configure customer records that are eligible for TCS so it gets calculated on their transactions.

To configure a customer record for TCS:

  1. Go to Lists > Relationships > Customers.

  2. Click Edit beside a customer.

  3. Click the Financial subtab.

  4. Check the TCS Eligibility box.

  5. (Optional) In the Permanent Account Number (PAN) field, enter PAN.

  6. (Optional) In the Aadhar Number field, enter the Aadhar number.

  7. (Optional) In the Tax Exemption Certificate field, enter the tax exemption certificate number.

  8. Click Save.

Configuring Item Records for TCS

You must configure configure item records that are eligible for TCS so it’s calculated when those items are used in a transaction.

To configure an item record for TCS:

  1. Go to Lists > Accounting > Items.

  2. Click Edit beside an item.

  3. Click the Accounting subtab.

  4. Check the TCS Eligibility box.

  5. In the TCS Subsection Code field, select a TCS subsection code.

  6. In the TCS Challan Code field, select a TCS challan code.

  7. Click Save.

Creating TCS Tax Rate Rules

After you set up TCS in customer and item records, you must create TCS tax rate rules to calculate tax.

To create a TCS tax rate rule:

  1. Go to Setup > India Localization > TCS Tax Rate Rules.

  2. Enter a name for the rule.

  3. Enter a description.

  4. In the Customer Type field, select a customer type.

  5. In the Subsection Code field, select a subsection code.

  6. In the Challan Code field, select a challan code.

  7. Check the PAN or Aadhar Available box if the customer has either one.

  8. In the Effective From field, enter the start date for the tax rule.

  9. In the Valid Until field, enter the end date for the tax rule.

  10. In the Threshold Amount field, enter the threshold amount.

  11. In the Rate field, enter the tax rate that applies to the rule.

  12. Click Save.

When you select an item in a transaction, the SuiteApp uses its subsection and challan codes to find the correct tax rule. TCS gets calculated based on the tax rule that applies to the item. If you don't set subsection and challan codes for an item, you can't calculate TCS for it.

If you want to create a new challan code to associate to an item, complete the following steps:

To create a new challan code:

  1. In the global Search field at the top of any NetSuite page, type New Challan Code.

  2. Enter a name for the challan code.

  3. In the Subsection Code field, select a subsection code.

  4. Click Save.

After you complete the setup, you can start calculating TCS on transactions. For more information, see Applying TCS on Transactions.

Related Topics

General Notices