Assigning TDS Section Codes to Items and Accounts
After you set up TDS, you can assign default TDS section codes to items and accounts. The default section code for an item or account automatically populates in the India Tax Section Code field when you pick it in a transaction. You can override the default section code in a transaction if needed.
The section code determines which TDS tax rate rule applies to a transaction. Ensure you’ve completed setup before assigning default section codes. For more information, see Setting Up TDS.
You can assign default section codes to items and accounts only with the Administrator or India Tax Manager role.
Assigning Default TDS Section Codes to Items
The India Localization SuiteTax Engine supports the following item types for TDS calculation. The section code you assign to an item becomes its default TDS section code.
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Inventory Item
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Assembly Items
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Lot Numbered Item
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Serialized Item
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Item Group
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Non-Inventory Item (for purchase and for resale)
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Other Charge (for purchase and for resale)
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Service (for purchase and for resale)
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Matrix Item
To assign a default a TDS section code to an item:
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Go to Lists > Accounting > Items.
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To assign a section code to an item, click Edit beside the item.
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Click the Accounting subtab.
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Under the India Tax Information section, in the Section Code field, select a section code.
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Click Save.
Assigning Default TDS Section Codes to Accounts
You can also assign default section codes to accounts. The section code you assign becomes the default TDS section code for the account.
To assign a default TDS section code to an account:
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Go to Lists > Accounting > Accounts.
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To assign a section code to an item, click Edit beside the account.
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In the India Tax Section Code field, select the default section code for this account.
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Click Save.
After you assign TDS section codes to items and accounts, you can start calculating TDS on bills. For more information, see Applying TDS on Vendor Bills.