Microsoft Dynamics® AX

TDS Threshold for a Concessional Certificate

Last Updated: January 2014
AX 2012 R3 / Version 1.0.0
 Contents

Introduction................................................................................................3
Audience.....................................................................................................3
Scenario......................................................................................................3
Before you begin........................................................................................3
TDS threshold setup...................................................................................4
Create and post purchase order with TDS
within per transaction threshold (0 - 30000)..............................................8
Create and post general journal with TDS
per transaction threshold (30000 - 75000)...............................................10
Create and post invoice journal with TDS,
cumulative threshold (75000 - Max)........................................................11
Withholding tax inquiries.........................................................................12
Withholding tax settlement process.........................................................13
TDS authority payment............................................................................14
Generate a TDS statement........................................................................15
Conclusion................................................................................................17
Disclaimer................................................................................................17

AX2012R3- Microsoft Dynamics AX 2012 TDS Threshold for Concessional Certificate Demo Script 2
INTRODUCTION
This document demonstrates how Microsoft Dynamics AX 2012 R3 supports the TDS calculation based on the
threshold defined.

AUDIENCE
The scripts in this document should be used to demonstrate the value of Microsoft Dynamics AX 2012 R3 to a
business decision maker (BDM) and how the solution supports transactions with TDS calculation as per the
threshold definition. The executives that you present to will find value in this script if they have an interest in:
 Creating a purchase order transaction with TDS with a threshold defined
 The financial impact of transactions with a TDS calculation

SCENARIO
This script focuses on the following processes:
 Post a purchase order with TDS
 Validate a TDS calculation with a threshold defined
 Verify the financial entries

DEMO PRESET CONFIGURATION:

This script was written to work with the Microsoft Dynamics AX 2012 R3 RTM Virtual Machine (VM). Make sure
that the VM is up and running and that you have logged on. The script addresses key pain points and challenges that
different roles might face. However the demo can be completed logged on as the system administrator.
Domain: CONTOSO
User: Administrator
Password: pass@word1

BEFORE YOU BEGIN

Before you begin, please add the following to your environment in the demo data set and company Contoso
INMF:
Use the following log in details:
 Domain: CONTOSO
 User: Administrator
 Password:pass@word1

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TDS THRESHOLD SETUP

Accounting supervisor

1. Click File > Tools > Session date and time

2. Click the calendar icon and select 12/10/2013 in the calendar
3. Click OK
4. Click General ledger > Setup > Threshold definitions

5. Click New
6. Enter Name Contract
7. Enter Description Contract threshold definition
8. Click Threshold designer
9. Click New
10. Click the General FastTab
11. Enter Effective from 4/1/2013
12. Enter Effective to 3/31/2014
13. Enter Lower limit 0.00
14. Enter Upper limit 75000.00
15. Select Type Cumulative
16. Select Cumulative : 0 - 75000; 4/1/2013 - 3/31/2014
17. Click New
18. Click the General FastTab
19. Enter Effective from 4/1/2013
20. Enter Effective to 3/31/2014
21. Enter Lower limit 0.00
22. Enter Upper limit 30000.00

23. Select Type Per transaction

24. Select the Final level check box

AX2012R3- Microsoft Dynamics AX 2012 TDS Threshold for Concessional Certificate Demo Script 4
25. Click New
26. Click the General FastTab
27. Enter Effective from 4/1/2013
28. Enter Effective to 3/31/2014
29. Enter Lower limit 30000.00
30. Enter Upper limit 0.00
31. Select Type Per transaction
32. Select the Final level check box
33. Select Contract
34. Click New
35. Click the General FastTab
36. Enter Effective from 4/1/2013
37. Enter Effective to 3/31/2014
38. Enter Lower limit 75000.00
39. Enter Upper limit 0.00
40. Select Type Cumulative
41. Select the Final level check box
42. Close the forms
43. Click General ledger > Setup > Withholding tax >
Withholding tax codes

AX2012R3- Microsoft Dynamics AX 2012 TDS Threshold for Concessional Certificate Demo Script 5
44. Click New
45. Enter Withholding tax code Cont_TD
46. Enter Withholding tax name Contract_Threshold
Definition
47. Enter Tax type TDS
48. Enter Withholding tax component Contract
49. Enter Main account 202078
50. Enter Settlement period TDS
51. Enter Receivable account 132220
52. Click Values
53. Enter Value 2.00000
54. Enter PAN non availability % = 5
55. Click Close
56. Select Cont_TD
57. Select the Apply threshold check box
58. Click Threshold references
59. Click New
60. Select Account type Vendor
61. Select Account code Table
62. Enter Account or Group INMF-000001
63. Select Threshold Contract
64. Click Threshold designer
65. Select the record Per transaction: 0 - 30000; 4/1/2013 -
3/31/2014
66. Click fast tab Tax value
67. Click New
68. Select PAN status Received
69. Click the General FastTab
70. Enter Reason code Y
71. Select Calculate tax No
72. Select Include in turnover base Yes
73. Unmark the Calculate previously nontaxed transactions
check box
74. Select the record Per transaction: 30000 - MAX; 4/1/2013
- 3/31/2014
75. Click Concession certificate
76. Enter Certificate number 145785466
77. Enter From date 04/01/2013
78. Enter To date 03/31/2014
79. Enter Turnover threshold 75000.00
80. Click OK
81. Click fast tab Tax value
82. Click New
83. Select PAN status Received
84. Enter Value 1.00000

AX2012R3- Microsoft Dynamics AX 2012 TDS Threshold for Concessional Certificate Demo Script 6
85. Click the General FastTab
86. Select Calculate tax Yes
87. Select Include in turnover base Yes
88. Unmark the Calculate previously nontaxed transactions
check box
89. Select the record Cumulative: 75000 - MAX; 4/1/2013 -
3/31/2014
90. Click fast tab Tax value
91. Click New
92. Select PAN status Received
93. Enter Value 2.00000
94. Click the General FastTab
95. Select Calculate tax Yes
96. Select Include in turnover base Yes
97. Select the Calculate previously nontaxed transactions
check box
98. Click Close
99. Click General ledger > Setup > Withholding tax >
Withholding tax groups

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 100.Click New
101.Enter Withholding tax group Cont_TD
102.Enter Description Contract - Threshold Definition
103.Select Tax type TDS
104.Click the Setup FastTab
105.Click Add
106.Select Withholding tax code Contract
107.Click Add
108.Select Withholding tax code Cont_ECess
109.Click Designer
110.Click New
111. Enter Tax code Contract
112.Select Taxable basis Gross amount
113.Click New
114. Enter Tax code Contract
115.Select Taxable basis Excl. Gross amount
116.Enter Calculation expression +[Contract]
117.Click Close
End of the TDS threshold setup
CREATE AND POST PURCHASE ORDER WITH TDS WITHIN PER TRANSACTION THRESHOLD (0 - 30000)

Purchasing agent
1. Click Accounts payable > Common > Purchase orders > All
purchase orders

2. On the Action pane, click the Purchase order tab, and then
click Purchase order

AX2012R3- Microsoft Dynamics AX 2012 TDS Threshold for Concessional Certificate Demo Script 8
 3. Enter Vendor account INMF-000001
4. Click the General FastTab
5. Enter Site Site1
6. Enter Warehouse 11
7. Click OK
8. Enter Item number S0001
9. Enter Quantity1.00
10. Enter Unit price 5000.00
11. Click the Line details FastTab
12. Click the Setup tab
13. Select TDS group Cont_TD
14. Save the record

15. Click Purchase order lines

16. Click Withholding tax
17. Verify withholding tax is not calculated
18. Click Close
19. On the Action pane, click Purchase, and then click Confirm

Accounts payable clerk

20. On the Action pane, click the Invoice tab
21. Click Invoice
22. Select Default quantity for lines Ordered quantity
23. Enter Invoice INV0147
24. Enter Invoice date 12/10/2013
25. Click Post, and then click Post
26. Click OK
27. On the Action pane, in the Journals group, click Invoice
28. Click the Overview tab
29. Click the Voucher button
30. Validate Voucher entries
31. Click Close for each form
End of Create and post a purchase order with TDS within per transaction threshold

AX2012R3- Microsoft Dynamics AX 2012 TDS Threshold for Concessional Certificate Demo Script 9
CREATE AND POST GENERAL JOURNAL WITH TDS PER TRANSACTION THRESHOLD (30000 ~ 75000)

Accounts payable payment clerk

1. Click File > Tools > Session date and time
2. Click the calendar icon and select 12/10/2013 in the calendar
3. Click OK
4. Click General ledger > Journals > General journal

5. Click New
6. Select Name GenJN
7. Click Lines
8. Enter Account type Vendor
9. Enter Account INMF-000001
10. Enter Credit 35000.00
11. Select Offset account type Ledger
12. Enter Offset account 110180
13. Enter TDS group Cont_TD
14. Click Withholding tax > Withholding tax
15. Verify the withholding tax calculation
16. Click Close
17. Click Post, and then click Post
18. Close the Infolog form
19. Click Inquiries, and then click Voucher
20. Verify the voucher transactions as shown in the screenshot
21. Click Close

End of Create and post a general journal with a TDS per transaction threshold (30000 - 75000)

AX2012R3- Microsoft Dynamics AX 2012 TDS Threshold for Concessional Certificate Demo Script 10
CREATE AND POST INVOICE JOURNAL WITH TDS, CUMULATIVE THRESHOLD (75000 ~ MAX)

22. Click File > Tools > Session date and time
23. Click the calendar icon and select 12/25/2013 in the calendar
24. Click OK
25. Click Accounts payable > Journals > Invoices > Invoice
journal

26. Click New

27. Select Name InvJ
28. Click Lines
29. Enter Account number INMF-000001
30. Enter Invoice INV0148
31. Enter Credit 25000.00
32. Select Offset account type Ledger
33. Enter Offset account 110180
34. Select TDS group Cont_TD

35. Click Withholding tax

36. Verify the calculated Withholding tax
37. Click Close
38. Click Post, and then click Post
39. Close the Infolog form
40. Click Inquiries, and then click Voucher
41. Verify the voucher as shown in the illustration
42. Click Close

End of enter and post an invoice journal with TDS, with a cumulative threshold (75000 - Max)

AX2012R3- Microsoft Dynamics AX 2012 TDS Threshold for Concessional Certificate Demo Script 11
WITHHOLDING TAX INQUIRIES

Chief financial officer

1. Click General ledger > Inquiries > Tax > India posted tax >
Withholding tax > TDS

2. Enter Tax Account Number (TAN) AXDF87645F

3. Select Settlement period TDS
4. Enter From date 12/10/2013
5. Enter To date 12/25/2013
6. Move the fields Certificate number and Turnover threshold
from the Available field list to the Selected field list.
7. Click OK
8. In the TDS transactions form, verify the voucher details as
shown in the screenshot
9. Click Close
End of withholding tax inquiries

AX2012R3- Microsoft Dynamics AX 2012 TDS Threshold for Concessional Certificate Demo Script 12
WITHHOLDING TAX SETTLEMENT PROCESS

Accounting supervisor/Accountant
10. Click General ledger > Periodic > India withholding tax >
Withholding tax payment

11. Select Tax type TDS

12. Enter Tax Account Number (TAN) AXDF87645F
13. Select Settlement period TDS
14. Enter From date 12/31/2013
15. Enter Transaction date 12/31/2013
16. Select the Update check box
17. Click OK
18. Click General ledger > Setup > Withholding tax> India >
Withholding tax settlement period

19. Select Tax type TDS

20. Select Settlement period TDS
21. Click Withholding tax payment
22. Select record with Date 12/31/2013 and Voucher INMF-
WT4049
23. Click Withholding tax transactions
24. Click Close

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 25. Click Voucher
26. Validate voucher entries
27. Close the forms

End of Withholding Tax settlement process

TDS AUTHORITY PAYMENT

Set session date 12/31/2013

Accounts payable payment clerk
28. Click Accounts payable > Journals > Payments > Payment
journal

29. Click New

30. Select Name VendPay
31. Click Lines
32. Enter Account INMF-000011
33. Click menu button Functions, and then click Settlement
34. Select the Mark check box on the line for each vendor invoice
that you want to pay
35. Click Close
36. Enter Offset account type Bank
37. Enter Offset account INR OPER
38. Click Post, and then click Post
39. Close the Infolog form
40. Click Inquiries, and then click Voucher
41. Click Withholding tax, and then click Challan information
42. Enter Challan number 1459563
43. Enter Date 12/31/2013
44. Enter Bank name INR OPER
45. Enter BSR code 0006542
46. Close the forms
End of the TDS authority payment

AX2012R3- Microsoft Dynamics AX 2012 TDS Threshold for Concessional Certificate Demo Script 14
GENERATE TDS STATEMENT

Accounting supervisor
47. Click File > Tools > Session date and time
48. Click the calendar icon and select 12/31/2013 in the calendar
49. Click OK
50. Click General ledger >Reports >India >TDS >TDS
statement

51. Enter Tax Account Number (TAN) AXDF87645F

52. Enter Statement Form 26Q
53. Enter Date 12/31/2013
54. Enter Responsible person 000001
55. Enter Designation Manager
56. Enter Printing date 01/01/2014
57. Select the Generate e-file check box
58. Enter File name D:\TDS\26Q3.txt
59. Select the Filed check box
60. Click OK
61. Click Close

AX2012R3- Microsoft Dynamics AX 2012 TDS Threshold for Concessional Certificate Demo Script 15
 62. Click General ledger > Periodic > India withholding tax >
TDS token numbers

63. Select the record with a Period end of December and a Return
filing date of 1/1/2014
64. Enter Token number 14876
65. Enter Receipt number 14887980
66. Click Close
End of Generate a TDS statement
End of the demo scripts

AX2012R3- Microsoft Dynamics AX 2012 TDS Threshold for Concessional Certificate Demo Script 16
CONCLUSION
This demonstration has guided you through how to create purchase transactions with TDS, based on
a threshold defined by:
 Posting purchase transaction with TDS
 Performing the tax settlement process
 Posting the service tax authority payment
 Verifying taxes are posted to the appropriate accounts

DISCLAIMER
© 2014 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista, Microsoft Dynamics and other product names are or
may be registered trademarks and/or trademarks in the U.S. and/or other countries. Other names and brands may be claimed as the property of
others.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this
presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of
Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation.
Sample code included in this presentation is made available AS IS. THE ENTIRE RISK OF THE USE OR THE RESULTS FROM THE USE
OF THIS CODE REMAINS WITH THE USER.
MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS
PRESENTATION. NO LICENSE, EXPRESS OR IMPLIED, BY ESTOPPEL OR OTHERWISE, TO ANY INTELLECTUAL PROPERTY
RIGHTS IS GRANTED BY THIS PRESENTATION. Microsoft products are not intended for use in medical, life-saving, or life-sustaining
applications.
Microsoft Dynamics is a line of integrated, adaptable business management solutions that enables you and your people to make business
decisions with greater confidence. Microsoft Dynamics works like and with familiar Microsoft software, automating and streamlining financial,
customer relationship and supply chain processes in a way that helps you drive business success.
U.S. and Canada Toll Free 1-888-477-7989
Worldwide +1-701-281-6500 www.microsoft.com/dynamics

AX2012R3- Microsoft Dynamics AX 2012 TDS Threshold for Concessional Certificate Demo Script 17