TDS for Purchases

How Indian customers can handle Tax Deducted at Source (TDS) when purchasing Equip credits.

This article applies only to customers in India who pay in INR. TDS is a requirement under Indian tax law, so it does not apply to purchases billed in USD.

When TDS Applies

Under Indian tax law, Tax Deducted at Source (TDS) must be deducted on certain business payments once they cross specific thresholds in a tax year.

Threshold	TDS Requirement
Total payments to Equip exceed ₹1,00,000 in a tax year	TDS must be deducted
A single transaction exceeds ₹30,000	TDS must be deducted

Equip’s online checkout collects the full purchase amount, so TDS cannot be deducted on the payment gateway itself. If your purchase crosses these thresholds, use one of the two flows below instead of paying entirely through the standard checkout.

Flow	Best When	How Credits Arrive
Deduct TDS before you pay	Your transaction exceeds ₹30,000 and must go outside the gateway	After Equip receives your bank transfer
Pay in full, claim a refund	You need credits immediately, or your accounting team files TDS on every transaction	Immediately at checkout

Consult your accounting or finance team to confirm whether TDS applies to your purchase and at what rate. Equip cannot advise on your company’s tax obligations.

Deducting TDS Before You Pay

If your purchase requires TDS, you can skip the online checkout and pay by bank transfer so your team can deduct TDS at the source.

1. Email Equip with your purchase details

   Write to [e-mail] with the number of credits you want to purchase.

2. Receive an invoice with bank details

   Equip shares an invoice along with bank transfer details for the payment.

3. Pay via bank transfer, net of TDS

   Your finance team makes the transfer, deducting TDS as required.

4. Credits are added to your account

   Once Equip receives the payment, the credits are added to your team’s balance.

Use this flow whenever a single purchase exceeds ₹30,000, since such payments cannot go through the website’s gateway with TDS deducted.

Claiming TDS Refunds

Sometimes your accounting team insists on filing TDS for every transaction, or you need credits immediately and want to sort out TDS afterwards. In that case, pay in full on Equip first and claim the TDS amount back.

Here is how it works, assuming a ₹10,000 purchase with a TDS rate of 10% (₹1,000):

1. Pay in full on Equip

   Complete the purchase on Equip, paying the entire ₹10,000. Your credits are added immediately.

2. Remit the TDS to the government

   Your finance team remits the ₹1,000 TDS amount on the government portal.

3. Share Form 16A with Equip

   Email your Form 16A (the TDS certificate) to [e-mail].

4. Receive your refund

   Equip refunds the ₹1,000, or issues its equivalent in credits, whichever you prefer.

The 10% rate above is only an example. Apply whatever TDS rate your finance team determines is correct for your transaction.

Related Resources

• How Credits Work - Credit pricing, purchase limits, and payment methods
• Invoices - Where to find and download invoices for your purchases
• Change Billing Information - Update the company details that appear on your invoices
• Contact Support - Reach the Equip team via chat or email