TDS – Setting Up of Tax Information on Vendor

Setting Up of Tax Information on Vendor
We must enter tax information on vendor records to calculate TDS on vendor bills.
To set up tax information on a vendor record:

• Go to Lists > Relationships > Vendor.
• Click Edit next to the vendor.
• Click the Financials subtab.
• Under the Tax Information section:
  • In the PAN Availability field, select the Permanent Account Number (PAN) availability for this vendor record.
    • Applied – Select this option if the vendor has already applied for PAN but the valid number is not yet available.
    • Invalid – Select this option if the vendor’s PAN is not in the correct format.
    • Not Available – Select this option if the vendor does not have PAN.
    • Available – Select this option if the vendor has PAN.
  • In the Permanent Account Number (PAN) field, enter the PAN of the vendor (maximum of 10 alphanumeric characters) if available.
  • In the Reference Number field, enter the vendor’s reference number. This is recommended if the vendor’s PAN Availability is set to Applied, Invalid, or Not Available.
  • In the Tax Identification Number (T1N) field, enter the TIN to use for this vendor (maximum of 10 characters). TAN is used for tax return purposes (Form 27Q). The value must contain alphanumeric characters only. The first character must not be zero.
  • Check the Non-Resident Indian box if the vendor is not a resident of India.
• Click Save.