(IND) Withholding tax calculation

Applies To: Microsoft Dynamics AX 2012

You can set up and calculate withholding tax for the tax deducted at source (TDS) and tax collected at source (TCS) tax types on the following transaction values:

  • The net transaction value that excludes indirect tax.

  • The net transaction value that excludes charges.

  • The net transaction value that excludes indirect tax and charges.

  • The gross transaction value that includes indirect tax.

  • The gross transaction value that includes taxes and charges.

Note

This topic does not apply to versions of Microsoft Dynamics AX 2012 prior to cumulative update 6 for AX 2012 R2.

Can I calculate withholding tax without including charges on the transaction?

Yes. You can calculate withholding tax without including charges on the transaction. To exclude charges from the calculation of withholding tax, in the Withholding tax groups form, create a withholding tax group for the TDS or TCS tax type, and then in the Exclude charges for TDS or TCS calculation field, select Yes.

Can I calculate withholding tax excluding service tax where service tax is also applicable on a transaction?

Yes. You can calculate withholding tax on the net transaction value that excludes the service tax. To calculate withholding tax by excluding service tax, in the Withholding tax groups form, create a withholding tax group for the TDS or TCS tax type, and then in the Exclude tax for TDS or TCS calculation field, select Service tax.

How can I calculate TCS that excludes service tax and charges?

To calculate TCS that excludes service tax and charges, in the Withholding tax groups form, create a withholding tax group for the TCS tax type, and then perform the following tasks:

  1. In the Exclude charges for TDS or TCS calculation field, select Service tax.

  2. In the Exclude charges for TDS or TCS calculation field, select Yes.

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