TDS Calculation Methods

TDS is calculated using the tax rule that applies to the bill. You can set up tax rules in the following ways:

• Tax rule without threshold basis (no threshold) – TDS is calculated using the section code, vendor type, effective period, and tax rate.

• Tax rule with year threshold basis (year threshold) – TDS is calculated when the total bill amount meets or exceeds the year threshold. TDS is calculated using section code, vendor type, effective period, tax rate, and threshold basis.

  • Retrospective – TDS applies to the whole amount after threshold is reached.

  • Non-retrospective – TDS is applied only to the amount above the year threshold.

• Tax rule with document threshold basis (document threshold) – TDS is calculated when a bill meets or exceeds the document threshold.

  • TDS is calculated on that bill and all following bills.

  • After the document threshold is reached, the SuiteApp ignores the threshold for subsequent bills associated with the rule.

  • TDS is calculated using section code, vendor type, effective period, tax rate, and threshold basis.

  • When a bill amount is meets or exceeds the document threshold, tax calculation is retrospective by default when you use a document threshold.

• Tax rule with both document and year thresholds – TDS is calculated using the section code, vendor type, effective period, tax rate, and threshold basis.

  • If document threshold is reached first, TDS applies using document threshold until year threshold is reached.

  • After year threshold is reached, TDS applies using year threshold.

  • If both are reached on the same bill, TDS uses the year threshold.

General Notices