# Setup TDS Types

YouTube: [HOW TO ENTER TDS DETAILS IN PURCHASE VOUCHER IN LOGIC ERP](https://www.youtube.com/watch?v=vXcho2pA9L0\&t=47s)

## Setting Up Setup TDS Types in LOGIC ERP

In this tutorial, we will guide you through the process of entering TDS details and calculating TDS while recording a purchase in **Logic ERP**.

### **Creating a TDS Account**

* If you want to learn more about **TDS account creation**, click here to [**Learn More**](https://kb.logicerp.com/logic-erp-learning-hub-tutorials-and-best-practices/setups/setup-accounts/setup-new-account/setting-up-tds-on-goods-accounts).

### **Setup TDS Types:**

* Navigate to the **Main Menu and then Expand "Setup".**
* **Select "Setup Accounts"** and then Click on "Setup TDS Types**"**.
* Select the TDS Nature.
  * **Normal TDS:** Deducted under the Income Tax Act on payments like rent, contractor fees, and professional services.
  * **TDS Under GST:** Deducted on taxable supplies by government departments or notified entities at 2% (1% CGST + 1% SGST or 2% IGST).
  * **TDS on Goods:** Applicable on the purchase of specified goods above a threshold, deducted at 0.1% under Section 194Q.
* Define the Detail as mentioned Below:
  * TDS Type Name: Define TDS Name "TDS ON GOODS".
  * TDS ACT Name: Choose the Ledger Account we created earlier.
  * TDS Percentage: Define the TDS Percentage as per Govt Low (0.1).
  * TDS Percentage Above Limit: Define the TDS Amount as per Govt Low 
  * Min Limit: Define the TDS Limit (5000000).

<figure><img src="https://4031188996-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FXMVkjt8zqHBQX1c9QvFS%2Fuploads%2FLNKmKbsD28UddDHcgozd%2FTSD%20on%20Goods.png?alt=media&#x26;token=25c0800e-a8dc-4149-af98-7fca92f2caee" alt=""><figcaption><p>This picture illustrates how you can set up a TDS account.</p></figcaption></figure>

### **Allocating Accounts to TDS Types**

* If you want to learn more about **Allocation Accounts to TDS Types**, click here [**Learn More**.](https://kb.logicerp.com/logic-erp-learning-hub-tutorials-and-best-practices/setups/setup-accounts/allocate-accounts-to-tds-types)