TDS for customer

Path: Business functionality > Local functionality > India > TDS for customer · tier official · system sales · narrative reviewed (checked by Opus)

Overview

TDS (Tax Deducted at Source) by customer is a withholding tax deducted at payment or invoice booking, under the Income Tax Act, 1961. This section explains how to configure it in Business Central, how TDS is calculated for customer transactions, and how to follow up on the certificates customers owe.

The three pages follow the order of work. Start with the setup page, which covers the rates, sections, assessee codes, concessional codes and customer master configuration. Then read the calculation page, which describes deducting TDS on customer receipts and the TDS certificate receivable. Finish with the certificate tracking page, which covers assigning, updating and rectifying certificate details in customer ledger entries.

Key points

• TDS by customer is a withholding tax deducted at payment or invoice booking.
• Setup covers TDS Rate, Tax Accounting Period, T.A.N, Assessee Code, TDS Section and Concessional Code.
• Customer master configuration is needed for TDS calculation and certificate tracking.
• The calculation page covers TDS section selection and customer receipt tracking, and notes a location code requirement.
• TDS certificates receivable from customers are identified through customer ledger entries.
• TDS Certificate Tracking lets you assign, update and rectify certificate details in customer ledger entries.

Learn pages

• Setting up TDS by Customer as per the Income Tax Act, 1961 provisions: Describes the basic setups required according to the Income Tax Act, 1961.
• TDS calculation for Customer: Describes the process for calculating and tracking TDS on customer transactions.
• TDS Certificate Tracking: Provides guidance on tracking and updating TDS certificates for customer transactions.

Source: Microsoft Learn (CC BY 4.0). Descriptions are Learn’s own.