(IND) Set up thresholds and concession certificates for tax calculations

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

After you create the threshold definitions and set up threshold hierarchies, you can set up thresholds and concession certificates for direct tax calculations. Microsoft Dynamics AX calculates direct taxes on transactions based on the threshold segments that you specify. Follow the steps in this topic to set up thresholds and concession certificates for direct tax calculation.

This task is part of a bigger process

The following illustration shows how setting up thresholds and concession certificates for direct tax calculation relates to threshold limits task.

For an overview of the process, see (IND) Tax thresholds and tax concession certificates.

Prerequisites

The following table shows the prerequisites that must be in place before you start.

Assign thresholds and threshold values to a withholding tax code

Use the Withholding tax codes form to set up a withholding tax code to use threshold limits. Use the Threshold references form to set up an entity to use a threshold, and then use the Threshold designer form to define the tax rates that apply to the final levels of the various hierarchy segments of the threshold.

To assign threshold and threshold values to a withholding tax code, follow these steps:

1. Click General ledger > Setup > Withholding tax > Withholding tax codes.

2. Select a withholding tax code that has a TDS or TCS tax type for which to apply the threshold.

   注意

   If you specified values in the Value field in the Withholding tax values form for the withholding tax code, remove the values.

3. Select the Apply threshold check box to apply threshold for the tax code.

4. Click Threshold references to open the Threshold references form, where you can set up an entity to use a threshold by specifying the account type, account code, and threshold definition.

   Field	Description
   Account type	Select the type of account to which to apply the threshold. Select from the following options: Customer – Apply the threshold to a customer account, a customer group, or all customers. Vendor – Apply the threshold to a vendor account, a vendor group, or all vendors. All – Apply the threshold to all customers and all vendors. 注意 If you select this option, All is updated in the Account code field, and the Account code field is not available.
   Account code	Select the account code for the selected account type. Select from the following options: Table – Apply the threshold for a single customer account or vendor account. Group – Apply the threshold for a customer group or vendor group. All – Apply the threshold for all customers or all vendors.
   Account or group	Select the customer account, customer group, vendor account, or vendor group that the threshold applies to. This field is determined by the selections in the Account type and Account code fields. 注意 This field is available only if you select Table or Group in the Account code field.
   Threshold	Select the threshold definition to apply to the account type, account code, and account or account groups that you selected. Select from the following options: Cumulative – Apply the threshold segment to cumulative transaction values. Per transaction – Apply the threshold segment to individual transaction values. Per transaction line – Apply the threshold segment to individual transaction line values.

5. After you set up the entity to use a threshold definition, click Threshold designer to open the Threshold designer form, where you can define the tax rates that apply to the final levels of the various hierarchy segments of the threshold.

6. In the left pane, select a final level of a threshold segment, and then modify the effective dates, lower and upper limits, or type of threshold, if required.

   Field	Description
   Effective from	Modify the date from which the threshold values are effective.
   Effective to	Modify the date until which the threshold values are effective.
   Lower limit	Modify the starting point of the threshold segment.
   Upper limit	Modify the ending point of the threshold segment.
   Type	Modify the type of threshold to apply to the selected segment.

7. In the right pane, on the Tax value FastTab, click New, and then set up a threshold value for the selected final level segment.

   Field	Description
   Tax effective from	Select the starting date from which the tax values are effective.
   Tax effective to	Select the ending date until which the tax values are effective.
   PAN Status	If the threshold applies to a vendor, a vendor group, or all vendors, select Not available or Received as the status of the Permanent Account Number (PAN) to apply the threshold to. For example, if you select Received in this field, the tax value will apply only to the vendors who have the PAN status set up as Received in the Vendors form. Alternatively, if the threshold applies to a customer, a customer group, or all customers, select Not applicable as the status of the PAN to apply the threshold to.
   Overlook threshold	If you select the Overlook threshold check box in the Withholding tax groups form for the withholding tax code, select this check box to use the tax value.
   Value	The percentage that is used to calculate direct taxes for the threshold segment.
   Reason code	Enter the reason for a lower deduction or no deduction. This reason will be printed on the TDS or TCS statements and electronic file.
   Calculate tax	Select Yes or No to indicate whether the direct tax is calculated for this value.
   Include in turnover base	Select Yes or No to indicate whether to include the value of this transaction in the overall turnover base that will be used for other transactions.
   Calculate previously nontaxed transactions	Select this check box to calculate direct tax on all previous taxable transactions for which taxes were not calculated.

8. Repeat step 7 to set up additional values for the same threshold segment.

9. Repeat steps 6 and 7 to set up values for additional threshold segments.

10. Repeat steps 4 through 7 to set up additional entities to use the threshold.

You can click Referenced by to open the Threshold reference list form, where you can view the list of referencing entities that use the selected threshold.

If required: Set up a tax concession certificate for a customer or vendor

If a customer or a vendor has a concession certificate, you can use the Withholding tax concessions form to set up the details of the tax concession certificate for the customer or vendor in Microsoft Dynamics AX. You can set up a tax concession certificate for a vendor only if you have set up the PAN status for the vendor as Received in the Status field on the Tax information FastTab in the Vendors form.

To set up a tax concession certificate for a customer or vendor, follow these steps:

1. Click General ledger > Setup > Withholding tax > Withholding tax codes.

2. Select a withholding tax code that has a TDS or TCS tax type for which threshold is applied.

3. Click Threshold references to open the Threshold references form, and then select the threshold reference to set up the concession certificate for.

4. Click Threshold designer to open the Threshold designer form, and then select a final level of a threshold segment to set up the concession certificate for.

5. Click Concession certificate to open the Withholding tax concessions form.

   注意

   The Concession certificate button is available only if you set up a customer or vendor account to use the threshold by specifying Customer or Vendor in the Account type field, Table in the Account code field, and a customer or vendor account in the Account or group field in the Threshold references form.

6. In the Certificate number field, enter the number of the tax concession certificate that is received from the customer or vendor.

7. In the From date and To date fields, specify the first and the last dates of the validity of the certificate.

8. In the Effective cancellation date field, enter the date after which the certificate will no longer be used or will be canceled.

9. In the Turnover threshold field, enter the maximum turnover amount up to which the certificate is applicable.

10. Click OK.

11. Repeat steps 4 through 10 to set up tax concession certificates for other segments, if required.

Next step

You have finished setting up tax thresholds and tax concession certificates for India. To set up withholding tax groups, and to create and post transactions that use thresholds, perform the following tasks:

1. Set up a withholding tax group that contains the withholding tax codes to which you assigned thresholds and threshold values. For more information about how to set up a withholding tax group, see (IND) Withholding tax groups (modified form).

2. Create and post transactions that use the withholding tax group for the withholding tax codes to which you assigned thresholds and threshold values. For more information about how to create and post transactions, see 源泉徴収税の計算と転記 and 源泉徴収税の対象となる仕入先支払の入力.

Related tasks

(IND) Define withholding tax information for vendors

(IND) Withholding tax component groups (form)

(IND) Withholding tax components (form)

(IND) Withholding tax codes (modified form)

Withholding tax transactions report (TaxWithholdTrans)

Technical information for system administrators

If you don't have access to the pages that are used to complete this task, contact your system administrator and provide the information that is shown in the following table.