(IND) About calculating TDS based on PAN availability [AX 2012]

Updated: October 17, 2012

Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2

When you apply tax deducted at source (TDS) to vendor payments, you must specify the vendor’s Permanent Account Number (PAN). If the PAN is not available, TDS is calculated at the highest rate.

You can verify a vendor’s Permanent Account Number (PAN) availability in the Vendors form, on the Tax information FastTab. If the Status field is set to Applied, Invalid, or Not available, the TDS is calculated at the highest rate.

When you generate vendor statements or reports, the PAN status of the vendor, as it is recorded in the system at the time of reporting, is included in the statement or report. The PAN status for the vendor is a part of what determines the rate of the TDS.

Complete the following tasks to calculate and deduct TDS for vendors:

You must also complete the following procedures to calculate and deduct TDS based on PAN availability:

Announcements: To see known issues and recent fixes, use Issue search in Microsoft Dynamics Lifecycle Services (LCS).