Applying TDS on Vendor Bills
After a vendor bill is approved, the India Localization SuiteTax Engine automatically calculates TDS for each line item using the default section code and the TDS tax rule for that item.
When you create, edit, or delete a bill, the SuiteApp stores the tax information in the India Accumulated Tax Bucket record. The India Audit Trail subtab on the India Accumulated Tax Buckets page displays any changes in taxes from creating, editing, or deleting a bill. For more information, see India Accumulated Tax Buckets for TDS.
The SuiteApp also creates a TI Journal to offset changes in TDS tax liability when the total bill value exceeds the TDS threshold. For more information, see TDS TI Journal.
To calculate TDS, ensure the Standard Journal Entry form is active. To activate it, go to Customization > Forms > Transaction Forms.
To apply TDS on a vendor bill:
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Go to Vendor Dashboard > Transactions > Enter Bills.
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Select the vendor.
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Click the Expenses and Items subtab.
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Enter the expenses or items for this bill.
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In the India Tax Section Code field, review and update the information as needed.
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(Optional) In the India Tax Nature of Remittances field, select the nature of remittance for each line item in these cases:
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Vendor is Non-Resident Indian (NRI).
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Subsidiary is set to India.
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Expense or item has section code.
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Enter other details as needed.
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To preview tax, click Preview Tax.
When you preview tax, the SuiteApp finds the correct nexus for the transaction and uses its tax engine to calculate taxes. After tax calculation, the tax details display on the Tax Details subtab of the transaction record.
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Click Save.
The Tax Deduction at Source feature doesn’t let you override tax details on a vendor bill. If you try to change the tax information by checking the Tax Details Override box on the Tax Details subtab, you’ll get an error.
TDS TI Journal
The TI journal for TDS is created automatically in the following scenarios:
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When the total vendor bill value exceeds vendor exemption, year-level, or document-level thresholds.
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When you create a reversal transaction for a vendor bill that had TDS calculated.
When the total amount for a vendor bill exceeds the threshold, the SuiteApp calculates TDS retrospectively or non-retrospectively, depending on the TDS tax rule for that bill.
If you delete a vendor bill or edit bill details such as value, vendor name, or section code, the tax liability changes too. The SuiteApp creates a TI Journal to offset this change, and each TI Journal record includes the bill ID it’s linked to.
The SuiteApp creates a TI Journal record based on transaction or section code.
India Accumulated Tax Buckets for TDS
India accumulated tax buckets are custom records that hold the tax data for a bucket. A bucket is a combination of TAN, section code, vendor, and accounting period.
The India Accumulated Tax Bucket record contains the accumulated net amount and tax amount for a bucket. When you create, edit, or delete a vendor bill, the SuiteApp updates these amounts for the related bucket. Any changes in the accumulated tax amounts appear under the India Audit Trail subtab on the India Accumulated Tax Buckets page.
After you calculate TDS on vendor bills, you can view the tax details for all your bills. For more information, see Viewing TDS Tax Details.