TDS is configured centrally and applied on the transactions it applies to. Each TDS record carries:
- TDS code and name — how it is identified and labelled.
- Description — free text for the team’s benefit.
- Percentage — the deduction rate.
- TDS type and type detail — the category of deduction.
- Tax type — the tax treatment applied.
- Customer type — so a different rate can apply to different classes of party.
- General ledger — the liability ledger the deduction posts to.
Practical advice
- Create one record per rate and party-type combination rather than editing a shared rate when it changes. Editing a rate does not restate what already posted.
- Map the ledger before you use the code — an unmapped deduction is a setup gate, not a warning.
- Check the rate against current rules at the start of each fiscal year.
Deductions appear in the ledger against the mapped liability account, and in the statutory report pack.
Did this answer your question? If not, our support team can look at your actual configuration.
Contact support