Scope

Configuring Tax Amount Withheld

How to record the TAW (Tax amount withheld) for TDS?

Does Tax withheld can be recorded to online payments?

What happens when tax withheld is removed from the invoices?

Summary

To allow recording of the tax amount withheld for TDS in your Chargebee site, follow these steps

Contact support@chargebee.com to enable the option for your site.

1. Click Settings > Configure Chargebee > Taxes. 

2. Enable the setting Record Tax Amount Withheld by Customers for offline payments. 

3. Click Save. 

Solution

Once your reach out to Early Adopter Program & after the setting is enabled, you can start recording the tax amount withheld for all offline payments on your Chargebee site. 

When the setting to allow recording of tax amount withheld is disabled, you will not be able to record the taxes withheld for any invoices (generated before/after disabling) going forward. You can remove an existing tax-withheld line item from an invoice record, however, you cannot add the tax amount withheld again, even for the same invoice. 

Recording Tax Amount Withheld

To record the tax amount withheld for an invoice, follow these steps:

1. Click Customers/Subscriptions and select the customer/subscription record for which you are recording TDS. 

2. Click open the associated Payment Due/Not Paid invoice. 

3. Click on the ellipsis icon, select y, and specify the amount. You can specify an amount that is equal to or lesser than the amount that is due as per the invoice, at the time of recording the TDS.
   

4. Optionally, you can edit the note that gets displayed for the amount withheld on the respective invoice PDF. 

5. Click Proceed. 

The invoice PDF displays a note on the tax withheld.

You cannot modify the tax amount withheld for the invoice. However, you can remove the tax withheld and add it again as required.

Issuing Credit Notes on Invoices with Taxes Withheld

You can create credit notes from invoices with tax amounts withheld.

While creating refundable credit notes or refunds for an invoice that contains taxes withheld, the amount specified for credit cannot exceed the sum of the invoice amount, taxes withheld, and credits from any previous credit notes.

Limitations
1. An Invoice can have only one Tax Withheld line item at any point in time.
2. Tax withheld can only be recorded for offline payments in Chargebee. They can not be recorded for online payments.
3. Recording tax amount withheld is currently not supported on sites with Orders module enabled.
4. When the Tax Withheld line item is removed, the total amount due on the invoice increases, however, the amount withheld is not added to excess payment.

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I am unable to see this setting in Chargebee?