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TDS Configuration

To set up TDS in ERPNext follow the below steps:

  • First, you have to define Tax withholding categories, by default 28 categories are already pre-defined as per Indian statutory compliances. But if you want to add a new category then you can create the same by clicking on "New"(button at right top corner)


  • As per category you have to define the Tax withholding rate along with "Single Transaction Threshold" & "Cumulative Transaction Threshold" for the Financial/Fiscal year.


  • On the same screen you will find another section of "Account Detail" to set company-wise TDS Payable account.


  • Once you are done with the Tax withholding setup go to Supplier master and assign the Tax withholding category.


  • Now when you create a Purchase invoice against that supplier make sure the "Apply Tax withholding Amount" is checked then only the system will auto fetch TDS Payable amount in the "Taxes & Charges" table based on the Threshold you have defined.


The standard report is also available to check monthly payable, just search for the "TDS payable monthly" report for the same.