Introduction
Welcome to this Empress guide! Today, we’ll be looking at how to set up Tax Deducted at Source (TDS), a crucial feature for our Indian users. Understanding and correctly managing your TDS is essential in maintaining compliance with India’s statutory financial regulations. With Empress, you can easily set up and track your TDS, ensuring accurate financial records and a streamlined financial management process.
Getting Started: Defining Tax Withholding Categories
Empress makes things easier for you by providing 28 pre-defined tax withholding categories that align with India’s statutory compliances. However, if you need to create a new category, here’s how:
- Locate and click on the “New” button, which you’ll find in the right top corner of your screen. This will allow you to create a new tax withholding category.
Setting Up Your Tax Withholding Rate
Each category you define needs to have an associated tax withholding rate. This rate is dictated by two primary components: the “Single Transaction Threshold” and the “Cumulative Transaction Threshold” for the fiscal year. You’ll set these up in the same screen where you define your tax withholding categories.
Inputting Your Account Details
Still on the same screen, you’ll find the “Account Detail” section. Here, you can input the specifics of your company’s TDS Payable account.
Linking Your Tax Withholding Category to Your Supplier
Once your tax withholding categories are all set up, it’s time to connect them to your suppliers. To do this, navigate to the Supplier master screen and assign the appropriate tax withholding category to each supplier.
Applying the Tax Withholding Amount in Purchase Invoices
When creating a purchase invoice for a supplier, ensure to select the “Apply Tax withholding Amount” checkbox. Doing so lets the system automatically calculate the TDS Payable amount based on the thresholds you’ve previously defined. This amount will then be displayed in the “Taxes & Charges” table on your invoice.
Tracking Your Monthly Payables
To help you keep track of your financials, Empress provides a standard report showing your monthly payables. You can view this report by searching for “TDS payable monthly.”
By following these simple steps, you can confidently manage your TDS within Empress. This feature not only ensures that your financial records are accurate and up-to-date but also helps you maintain compliance with statutory requirements. For additional support or resources, please visit our Empress Help Center or reach out to our Support team.