TDS at Source – III
Configuring TDS in Sage X3
In our last blog we had discussed about Sage X3 TDS configuration part which includes Fiscal Year, Responsible person, Branch Details that needs to be setup properly before starting up for Sage X3 TDS module. In this blog we will explore few more important settings that allows proper functioning of Sage X3 TDS module.
Nature of Deduction: This screen helps the user to maintain track on what TDS Section and amount range on which TDS should be deducted. Here, the user can also define the time slabs on which TDS percentage or amount should be deducted.
The “Nature of Deduction” may be Rent Commission Brokerage, Interest etc.
Here the user needs to define the NOD code with
- TDS section code
- Cumulative Cutoff limit: If TDS section is defined with the cumulative Cutoff limit with yes in TDS section master then, the user has to specify the cumulative castoff limit for this NOD.
- Type of deduction like Amount or Percentage.
- Amount/percentage of tax payable for a range of base amount.
Party Details: Sage X3 TDS party details options allows the user to maintain the records of the TDS payable vendors during the invoice or payment transaction.
In Party Details user needs to define vendor code with
- Nature of deduction
- State code
- Branch code
- Vendors PAN number which is mandatory field during E filling,
- Vendor Type
- Vendor Statue: Residential / Non Residential
Note: Nature of deduction defined here gets automatically populated during the AP transaction but user can change the Nature of Deduction manually.
TDS Options: Sage X3 TDS Options screen is the core setting of the TDS module. This screen basically contain four major setting for TDS module which need to be define to make Sage X3 module work properly.
Setting we need to be define in this screen are as follows,
- Company tab: Here, the user can set Company Contact person, PAN, TAN, Email and Status if is Government or Other (Private)
- Responsibility tab: Here, the user can set Company’s responsible person
- Processing tab: Here, the user has to set correct fiscal year for which he\she is doing the transactions. E.g. 2015-2016.
- Numbering tab: The system defaults the Prefixes/Length/Next Number when the TDS module is activated. However user definitely has an option of changing the numbering system. In this tab user can set numbering sequence for Form 16 A and Remittance entry as per his/her preference
We will know more about TDS in our next blog.