TDS Software | Section 197 LDC

Section 197 LDCs honoured at the line, within the validity window.

Vendors with a lower-deduction certificate have section, rate and validity loaded at the vendor master. Bills posted within the window deduct at the lower rate. Bills posted outside the window deduct at the section default. Auto-expiry handles the cut-over.

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How it works

LDC, applied automatically.

Step 01

LDC uploaded at vendor master

Section, lower rate and validity dates (from-date and to-date) captured. Supporting certificate document attached.

Step 02

Applied at the line, within window

Bills posted between from-date and to-date deduct at the LDC rate, not the section default.

Step 03

Auto-expiry on to-date

On the to-date, the rate auto-reverts to the section default. Bills posted after expiry use the default rate.

Step 04

Renewal workflow

Vendors are auto-prompted to renew their LDC 30 days before expiry via the vendor portal. New LDC uploads update the rate and dates seamlessly.

What the system does

Capability, input, output.

Capability	Input	Output
LDC upload	Cert section + rate + validity + supporting doc	LDC stored at the vendor master
Rate override at the line	Bill posting date within validity	Lower rate applied at the line
Auto-expiry	LDC to-date	Rate reverts to section default
Renewal nudge	LDC nearing expiry	Vendor portal task + email 30 days prior

LDC upload

Input

Cert section + rate + validity + supporting doc

Output

LDC stored at the vendor master
Rate override at the line

Input

Bill posting date within validity

Output

Lower rate applied at the line
Auto-expiry

Input

LDC to-date

Output

Rate reverts to section default
Renewal nudge

Input

LDC nearing expiry

Output

Vendor portal task + email 30 days prior

Compliance + integrations

Section 197, the way the law expects.

LDC applies prospectively from the certificate effective date. Retrospective application is a manual decision. Renewal handled before expiry via vendor portal.

Regulations we work within

Section 197, Income Tax Act

Lower-deduction certificate honoured per the certificate's section, rate and validity.
Rule 28

Application form (Form 13) and certificate format aligned.

Connects to

Vendor portal Self-service LDC upload and renewal
CBDT Certificate validation (where API available)

Section 197 LDC FAQ

What buyers ask.

Bills posted before the LDC effective date. Lower rate or default?

Default. The LDC applies prospectively from the certificate effective date. Bills posted before that retain their original deduction. Retrospective application is not standard and requires manual override.

LDC for a specific section only. What if the vendor has bills under multiple sections?

The LDC applies only to the section it covers. If the vendor has 194J and 194I bills and the LDC is for 194J only, only 194J deductions use the lower rate. 194I uses the section default.

LDC renewal. How is it tracked?

The system tracks LDC expiry dates per vendor. 30 days before expiry, a vendor portal task and email nudge fire. Vendors upload the renewed certificate; the system updates rate and dates seamlessly.

Related features

Upload an LDC. See the lower rate apply at the next bill.

Connect one entity, free. Upload one Section 197 certificate. Post a bill for that vendor; the lower rate applies at the line within the validity window.