Adding a lower deduction certificate

When a vendor or client gives you a certificate for TDS at a lower or nil rate, record it in Settings → Taxes → Lower Deduction Certificates. SmartLedger then uses the certificate's rate for that party and section while the certificate is valid.

Before you start

• Turn on TDS under Settings → Taxes → Income TDS Settings. See Setting up TDS for your company.
• Add the vendor or client first, so you can pick them.

Add a certificate

1. Go to Settings → Taxes and choose Lower Deduction Certificates.
2. Click Add Certificate.
3. Choose the Party Type: Vendor or Client.
4. Search for and pick the Vendor or Client.
5. Choose the TDS Section the certificate covers.
6. Enter the Certificate Number and the Rate (%) approved in the certificate.
7. Leave Status as Active.
8. Set Valid From and Valid To.
9. Click Create.

When the certificate rate is used

SmartLedger applies the certificate's rate only when all of these are true:

• The document is for the same party and the same TDS section.
• The certificate's Status is Active.
• The document's date falls between Valid From and Valid To.
• The certificate rate is lower than the rate the section would otherwise use.

In every other case, the section's normal rate applies.

Manage certificates

The list shows each certificate's Certificate No., Party, Section, Rate, Valid From, Valid To and Status. Search by certificate number, party or section. Click a party's name to see their details.

• To change a certificate, click its edit icon, update the details and click Save.
• If the department cancels a certificate, edit it and set Status to Revoked. Use Expired for one that has run out.
• To remove one, click its delete icon and confirm with Delete. This can't be undone.

Related articles

• Setting up TDS for your company
• Deducting TDS on a purchase invoice