Set Up for TDS

1. Define Tax Authority

Define Supplier with type “India Tax Authority”. The TDS standard Invoice will be generated against this
supplier Navigation for this form (N) → India Local Payables → Oracle Payables → Suppliers → Entry

Define TDS Tax Calendar

Define a special accounting period as TDS financial Year in standard AP Periods definition UI. This period
should start from 1-Apr and end to 31-Mar of next year as Year type. After defining this TDS period, the
same can be assigned to the TDS regime as TDS financial Year .

Navigation for this form (N) India Local Payables → Oracle Payables → Setup → Calendar → Accounting
→ Periods a) Provide Calendar as “TDS_CALENDER” b) Choose Period Type as Year c) Start data and end
date should be for financial year(Apr- Mar)

Define Regime Registration

Here, we will define the respective Tax Regime used. This Regime name entered is a userconfigurable
field and we can enter a value for the Regime Name. Navigation for this form is (N) → Oracle Financials
for India →Tax Configuration →Define Regime a) Choose Regime type as “Withholding Tax”. Regime
Type of Transaction Tax will be used for Indirect Taxes (GST Taxes) b) Choose Tax Calendar which was
defined in (4.2) c) Choose the Tax Authority which was defined in step (4.1) d) Define Rounding Rules

Define Tax Type

Here, we will define the respective Tax Type. Navigation for this form (N) → Oracle Financials for India
→Tax Configuration →Define Tax Type

a) Choose the Regime code which was defined

b) In Details Tab Select the check box “Withholding tax applicable”

c) In Accounting tab select Ledger and Operating Unit d) Provide Liability Account and Rounding Account
Details.
Define Tax Rate

Here, we specify the rate of tax which is supposed to be calculated on the transaction.

As per our requirement, if the tax is Recoverable or inclusive in nature.

Navigation for this form (N) → Oracle Financials for India →Tax Configuration →Define Tax Rate

a) Select Operating Unit

b) Choose the Regime which was defined at step (4.3) c)
c) Choose tax type code which was defined at step (4.4) d)
d) Provide Rate Details e) Accounting information will be defaulted from Tax Type

194H COMPANY
194H NONCOMPANY

WITHOUT PAN-20%

194C-CONTRACTOR-2%
194C 1%

194Q-.1%

Define Tax Category

Define Tax category that has to be used/defaulted while creating the transactions.

Navigation for this form (N) → Oracle Financials for India →Tax Configuration →Define Tax Categories

a) Select the Operating Unit

b) Provide Tax category Name

c) Provide Start Date

d) Choose the Tax Rate that has been defined in Step (5)

e) Provide the precedence

194H-NON COMPANY

194H COMPANY

Define Common Configuration

Navigation for this form (N) → Oracle Financials for India →Tax Configuration → Define Common
Configuration

a) Choose the operating Units

b) In the withholdings Tab i) Provide tax category that has to be defaulted when Registration number is
not available ii) Check below check boxes if The TDS invoice generated should be validated and
approved accordingly
Create Pre-Validated TDS Invoice and Credit Memo

Create Pre-Approved TDS Invoice and Credit Memo

Create Pre-Validated TDS Invoice and Credit Memo: IF this checkbox is enabled, system will invoke
Approval of TDS invoice concurrent program to validate created TDS invoices.

Create Pre-Approved TDS Invoice and Credit Memo: IF enabled, system will create TDS invoices with
approve status = ‘NOT REQUIRED’

Define First Party Registration

Provide the tan number and Pan number of the Organization in the first party Registration.

Navigation for this form (N) →Oracle Financials for India → Party Registrations → Define First Party
Registration
a) Choose Regime Type as “Withholding Tax”

b) Organization as “Operating Unit”

c) Choose the OU name d) Click on New

Define Third Party Registration

Define third party registration for the Suppliers for which the TDS has to be deducted. Third party
registration has to be done for the null site first and then for the site level at the OU

Navigation for this form (N) →Oracle Financials for India → Party Registrations → Define Third Party
Registration a) Define Third Party Registration for Null Site To define third party registration at null site,
don’t select Operating Unit.

b) Select Party Type as “Supplier”

c) Select Party Name

d) Click on New

e) In Registration Tab Choose the Regime Code

f) Provide TAN Number and PAN number at Primary and secondary Registration Numbers g) Select the
default Section Code at “Default Section ” Field that should be defaulted at transaction

Null Site
Vendor classification has to be added in “Reporting Codes” Tab Choose Reporting Type Name as
“Vendor Type” and in the Reporting code field choose appropriate Value.
Define Threshold Setup

Select Exception setup if the vendor has the TDS certificate. If the Exception setup has been selected
then assign vendors tab will be enabled to define the vendor name, certificate number, start date and
end date Define the Operating Unit and Tax Category Name that has to be defaulted for the applicable
section code Navigation for this form

(N) →Oracle Financials for India → Withholding Tax Setup → Define Withholding Thresholds

a) Select the Regime , Vendor Type and Section code

b) Click on New

TDS Threshold exception setup