D365 FO India TDS

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Posted on by YD-01101305-0

Good day!

In D365 FO TDS is assigned to vendor, but logically TDS depends on nature of service you procure. So there are may be situation when the same vendor will provide you services for which TDS % should be different and in this case for both lines of PO system will apply the same TDS and after that you should manually correct this on PO/Invoice line. Are there any automation for this so no need to always control this?

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Raj Borad 1,434 on at

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Hi,

You can automate TDS handling based on the nature of services by using withholding tax codes tied to different procurement categories or service items.

By configuring the multiple TDS codes for different services, the correct TDS rate calculated automatically at the PO or invoice line level based on the service procured. It avoids manual correction and ensures accuracy. It should be achieve by linking TDS codes to procurement categories or items through withholding tax groups, allowing the system to apply the appropriate TDS.

I hope it will helpful.

Thanks & regards,

Raj D Borad

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YD-01101305-0 83 on at

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@Raj Borad can you provide any screenshot. because I was not able to find such field in procurement categories.

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Raj Borad 1,434 on at

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Hi User,

Actually I have not setup done for the withholding setup right now.

But the below Thread may useful for you.

Solved: Item withholding tax group of procurement category not inherited for prepayment invoice line

It describes that the Vendor should be enabled for calculating withholding tax.

Thanks & regards,

Raj D Borad

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YD-01101305-0 83 on at

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@Raj Borad I checked it after your comment, but the thing is that in my procurement categories, there is no setup for withholding tax. Do I need to activate feature?

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