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TDS/TCS Section

note

To go back to the Search screen, click TDS/TCS Section next to Welcome at the top-right corner of the page.

1.1 Add TDS/TCS Section​

Add TDS/TCS Section - Step-by-Step​

Step 1: Reach the TDS/TCS Section Page​

  • From the main side menu, click on "Accounts", then go to "Masters", and finally choose "TDS/TCS Section".
    This will open the TDS/TCS Section Search page.

Step 2: Adding TDS/TCS Section​

  • Located at the top-right corner of the TDS/TCS Section Search page, there is an “Add TDS/TCS Section” button.
    Simply click on this button to proceed.

Step 3: Fill in Details​

The Add TDS/TCS Section page will open. Here, provide the following details:

  • PAN Type: [Dropdown] [Mandatory] Select the applicable PAN type.
  • Section: [Text Field] [Mandatory] Enter the TDS/TCS section code (e.g., 194C, 206C).
  • Description: [Text Field] [Mandatory] Provide a short description for the selected section.
  • Percentage: [Text Field] [Mandatory] Enter the TDS/TCS rate applicable in percentage.
  • Single Bill Limit: [Text Field] [Mandatory] Enter the maximum amount for one individual bill or transaction after which TDS/TCS (Tax Deducted or Collected at Source) becomes applicable.
  • Financial Year Bill Limit: [Text Field] [Optional] Enter the total billing amount in a financial year after which TDS/TCS becomes applicable, even if individual bills are below the single-bill limit.
  • Effective Date: [Text Field] [Mandatory] Enter the date from which the TDS/TCS rule becomes effective.
  • Expiry Date: [Text Field] [Mandatory] Enter the expiry date of the rule if applicable.

Note:​

  • Ensure that all mandatory fields are filled before submission.
  • A record is considered duplicate if another record already exists with the same Section and PAN Type, and the Effective Date and Expiry Date periods overlap.
  • If the Expiry Date is not entered, the system treats it as an open-ended period, meaning the record remains active without an end date.

Submission of TDS/TCS Section​

Upon submission, the TDS/TCS Section will be added successfully, and the screen will transition to editing mode.

If you change your mind and don’t want to add a new section, click “Cancel” to return to the TDS/TCS Section Search page.
To start over, click “Clear” to erase all entered information.

1.2 Search TDS/TCS Section​

Search a TDS/TCS Section - Step-by-Step​

Step 1: Start Searching​

On the TDS/TCS Section Search page, you can search in different ways:

  • PAN Type: Select the applicable PAN Type from the dropdown.
  • Section: Enter the TDS/TCS section you want to search for.
  • For All: Click “Search” without entering any filters to see all records.

Step 2: See the Results​

After clicking “Search”, you’ll see results displayed in a table format.

The list will include details such as:

  • PAN Type
  • Section
  • Description
  • Percentage
  • Limits
  • Effective Date
  • Expiry Date
  • Option to View/Edit

1.3 Edit TDS/TCS Section​

Edit a TDS/TCS Section - Step-by-Step​

Step 1: Find TDS/TCS Section to Edit​

Search for the TDS/TCS Section you want to modify using the Search feature.
Once results appear, locate the record and click “View/Edit” next to it.

Step 2: Start Editing​

The Edit TDS/TCS Section page will open, displaying the existing details.

Step 3: Edit Details​

You can make changes to the following fields as required:

  • Description
  • PAN Type
  • Percentage
  • Limits
  • Effective/Expiry Dates

Step 4: Submit/Cancel​

After editing, review the updated information.
When ready, click “Submit” to save your changes.
If you wish to discard the changes, click “Cancel” to return to the search page.

1.4 How the Single Bill and Financial Year Limits Are Applied​

The two limits on a TDS/TCS Section are what the invoice screens use to decide whether TDS/TCS applies to a supplier. They are used by GRN Invoice and Direct Invoice, and both screens apply the rules in exactly the same way.

The applicability rule​

TDS/TCS is treated as applicable when all of the following are true:

  1. The supplier is marked as TDS/TCS applicable in the Supplier master.
  2. The supplier has a default TDS/TCS section on the supplier's TDS/TCS sub-tab, and that section is valid on the invoice date (the invoice date falls between the section's Effective Date and Expiry Date).
  3. Either of the two limits on that default section has been reached:
    • the Single Bill Limit — checked against the current invoice, or
    • the Financial Year Bill Limit — checked against the supplier's running total for the financial year.
important

The two limits are an either/or check, not a combined one. Crossing just one of them is enough to make TDS/TCS applicable.

note

Only the supplier's default TDS/TCS section is used for this check. If a supplier is mapped to several sections, the limits of the non-default sections do not trigger the check, even though you can still select those sections manually on the invoice.

What each limit is compared against​

LimitCompared against
Single Bill LimitThe taxable value of the current invoice only — that is, the total of the line items before GST. On a GRN Invoice this is the taxable value after any line-item discount.
Financial Year Bill LimitThe supplier's total invoice value for the current financial year, calculated as described below.
important

The two limits are measured on different bases. The Single Bill Limit is compared against the taxable value excluding GST, while the Financial Year Bill Limit is compared against invoice totals including GST.

How the financial year total is calculated​

The financial year total is worked out by the system each time you select a supplier on an invoice. It is not a stored value and it is not shown on the invoice screen.

The financial year window

  • The window is taken from the Financial Year Starts month set in Organisation Details. For the standard Indian setting of April, the window runs from 1 April to 31 March.
  • The window used is the financial year that contains today's date.
important

The window is based on today's date, not the invoice date on the screen. If you back-date an invoice into a previous financial year, the check is still made against the current financial year's total.

Which invoices are counted

Every invoice for that supplier whose Invoice Date falls inside the window is included. This means:

  • Both GRN Invoice records and Direct Invoice records are counted together, because they are held as one set of supplier invoices.
  • Invoices in every status are counted, including drafts — an invoice does not have to be confirmed to add to the financial year total.

Which amount is added up

For each counted invoice, the value added to the total is:

Invoice Value = Taxable Amount + Tax Amount + Other Charges

That is, the invoice value including GST, taken before any TDS/TCS and before any advance amount is deducted.

The sum of these values across the financial year is what gets compared with the Financial Year Bill Limit.

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If the supplier has no invoices at all inside the window, the financial year total is treated as 0, so only the Single Bill Limit can trigger TDS/TCS.

What happens on the invoice screen​

  • When the rule is met on a new invoice, the default section is filled in and TDS is applied automatically, unless you have already chosen TCS.
  • Once you set the Apply TDS/TCS value or the TDS/TCS Section yourself, your choice is final — the system will not overwrite or clear it.
  • On an existing invoice that you are editing, the saved values are kept as they are and are not re-suggested.
  • On Direct Invoice, clicking Confirm when the limits are crossed but Applied TDS/TCS is still Not Applicable shows a confirmation popup before the invoice is saved.

That’s it! You’ve learned how to Add, Search, and Edit a TDS/TCS Section in the DMeX app.
If you need further help, contact the DMeX Support Team.