(IND) Set up withholding tax codes for TDS tax types

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Important

This content is archived and is not being updated. For the latest documentation, see Microsoft Dynamics 365 product documentation. For the latest release plans, see Dynamics 365 and Microsoft Power Platform release plans.

Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2

Create a withholding tax code for TDS tax

  1. Click General ledger > Setup > Withholding tax > Withholding tax codes.

  2. Click New to create a withholding tax code for TDS.

  3. In the Withholding tax code field, enter TDS. In the Withholding tax name field, enter the name of the TDS tax code.

  4. On the General FastTab, in the Currency field, select the currency in which the tax is displayed. TDS tax must be paid in this currency.

  5. In the Main account field, select the main account to which to post the TDS amount that is deducted in sales transactions.

  6. On the Calculation FastTab, select whether the TDS tax is calculated based on the net amount or the gross amount.

  7. In the Round-off field, enter the round-off method, in the format x.xx. In the Rounding form field, specify how amounts should be rounded.

    For example, if you enter 0.10 in the Round-off field, an amount of 9345.43 is rounded to 9345.40 or 9345.50, depending on the option that is selected in the Rounding form field.

  8. Click Close, or complete the other procedures in this topic to set up more requirements for the TDS tax code.

Set up tax values for a withholding tax code

  1. Click General ledger > Setup > Withholding tax > Withholding tax codes.

  2. Select the tax code for which to set up tax values, and then click Values.

  3. In the Withholding tax values form, in the From date and To date fields, enter the starting date and ending date for the TDS values.

  4. Enter the minimum and maximum amounts to which to apply the TDS tax.

  5. In the Value field, enter the percentage to use to calculate the TDS tax.

  6. In the Exclude % field, enter the percentage amount to exclude before the TDS tax is calculated, and then click Close.

Set up tax limits for a withholding tax code

  1. Click General ledger > Setup > Withholding tax > Withholding tax codes.

  2. Select the tax code for which to set up tax limits, and then click Limits.

  3. In the Withholding tax limits form, in the From date and To date fields, enter the starting date and ending date for the TDS limits.

  4. Enter the minimum and maximum amounts to which to apply the TDS tax, and then click Close.

See also

Withholding tax codes (form)

Withholding tax values (form)

Withholding tax limits (form)

(IND) Withholding tax codes (modified form)

(IND) Setting up Tax Deducted at Source (TDS)