Manage and calculate Tax Deduction at Source (TDS)

TDS Solution by NetSuite enables you to calculate Tax Deduction at Source (TDS) on vendor bill transactions. Tax Deduction at Source (TDS) tax type determines where TDS tax is tracked in the chart of accounts. You must specify the tax accounts to which NetSuite should post the collection or payment of tax.

Setting Up the Tax Deduction at Source Tax Rate Rules

Tax Deduction at Source Tax Rate Rule is used to calculate basic TDS tax on transactions. Tax rules that come under Tax Deduction at Source will use the default Tax Deduction at Source tax type and tax codes sourced from the India Localization SuiteTax Engine SuiteApp. Education Cess tax rule is used to calculate education cess tax imposed by the government for the development of education in India. Secondary Education Cess tax rule is used to calculate secondary education cess tax imposed by the government for the development of higher education in India. The Surcharge tax rule is used to calculate additional charge or tax.

Setting Default Tax Deduction at Source Section Codes

After setting up your Tax Deduction at Source (TDS) tax information on vendor records, tax accounts on tax types, section codes, and tax rules, you can associate default TDS section codes with items and accounts. Item types supported by the Tax Deduction at Source (TDS) feature:

  • Inventory Item
  • Lot Numbered Item
  • Serialized Item
  • Item Group
  • Non-Inventory Item (For Purchase and For Resale)
  • Other Charge (For Purchase and For Resale)
  • Service (For Purchase and For Resale)
  • Matrix Item

Applying Tax Deduction at Source on Vendor Bills

With TDS Solution by NetSuite, you can automate calculation of the Tax Deduction at Source (TDS) tax amount on vendor bills after the bill is approved. The tax amount calculated for each line item is based on the default section codes assigned to each line item record and the TDS tax rules you created.

Tax Deduction at Source Tax Details (Reports)

Leveraging this feature, you can view tax details for each tax type before sending them to tax authorities for payment and for tax return filing purposes. You can access the Tax Deduction at Source (TDS) tax details using an Administrator or India Tax Manager role. Furthermore, you can create TDS Tax Details saved searches.

Generating Tax Deduction at Source Challan Voucher

You can create challan voucher for each tax payment sent to the tax authority. A challan is required to show payment to a tax authority and must contain tax related information and accounts for the payment made.