How to configure Lower TDS Deduction Certificate received from a supplier ?

How to configure Lower TDS Deduction Certificate received from a supplier ?

Suppose Your vendor name is: SQQ  INTERNATIONAL LOGISTICS PVT LTD has issued Tax withholding exemption certificate of limit 50,000 , TDS section 194C, Exemption rate : 0.01% , Period : 1Sep 2022 to 28-Feb-2023:
How you can add the certificate in Shipmnts please follow below steps carefully:
  • Go to Network
  • Click on All Companies
  • Go to Supplier Section
  • Search Supplier Name as : SQQ  INTERNATIONAL LOGISTICS PVT LTD
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  • Go to Payable Exemption Section
  • Click on Add New Exemption
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  • Before Adding Exemption Certificate Tax witholding category with normal rate other than lower rate should be set at Supplier Master
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  • System Will Redirect You to New Tax Withholding Exemption  Form.
  • Enter Your Company Name
Fill the details mentioned on Exemption Certificate
  • Party Type As Supplier
  • Enter Supplier Name As SQQ  INTERNATIONAL LOGISTICS PVT LTD
  • Enter Exemption certificate number
  • Purpose of Issuing Exemption Certificate
  • Enter Tan number
  • Enter Tax withholding Category
  • Enter Exemption
  • Exemption Limit
  • Certificate Valid from and Valid to date
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  • Click on Save.
  • If You Tick mark on No Exemption Limit Checkbox then system will calculate Tds @ 0.01% rate only whether the expense amount is within 50,000 or above 50,000. Then Click on Save
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  • If you add more exemption certificate.
  • Click on “Add new Exemption.
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Once Exemption certificate is added.
How TDS calculation works please refer below attached purchase invoice of Supplier: SQQ International Logistics Pvt ltd.

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  • System has calculated TDS amount as per the exemption certifcate.