Creating TCS Tax Rate Rules
After you set up TCS in customer and item records, you must create Tax Collection at Source (TCS) tax rate rules to calculate tax.
To create a TCS tax rate rule:
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Go to Setup > India Localization > TCS Tax Rate Rules.
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Enter a name for the rule.
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Enter a description.
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In the Customer Type field, select a customer type.
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In the Subsection Code field, select a subsection code.
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In the Challan Code field, select a challan code.
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Check the PAN or Aadhar Available box if the customer has either one.
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In the Effective From field, enter the start date for the tax rule.
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In the Valid Until field, enter the end date for the tax rule.
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In the Threshold Amount field, enter the threshold amount.
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In the Rate field, enter the tax rate that applies to the rule.
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Click Save.
When you select an item in a transaction, the SuiteApp uses its subsection and challan codes to find the correct tax rule. TCS gets calculated based on the tax rule that applies to the item. If you don't set subsection and challan codes for an item, you can't calculate TCS for it.
If you want to create a new challan code to associate to an item, complete the following steps:
To create a new challan code:
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In the global Search field at the top of any NetSuite page, type New Challan Code.
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Enter a name for the challan code.
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In the Subsection Code field, select a subsection code.
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Click Save.
After you complete the setup, you can start calculating TCS on transactions. For more information, see Applying TCS on Transactions.