> ## Documentation Index
> Fetch the complete documentation index at: https://help.equip.co/llms.txt
> Use this file to discover all available pages before exploring further.

# TDS for Purchases

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

<Note>
  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.
</Note>

## 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                 |

<Warning>
  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.
</Warning>

## 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.

<Steps>
  <Step title="Email Equip with your purchase details">
    Write to [hello@equip.co](mailto:hello@equip.co) with the number of credits you want to purchase.
  </Step>

  <Step title="Receive an invoice with bank details">
    Equip shares an invoice along with bank transfer details for the payment.
  </Step>

  <Step title="Pay via bank transfer, net of TDS">
    Your finance team makes the transfer, deducting TDS as required.
  </Step>

  <Step title="Credits are added to your account">
    Once Equip receives the payment, the credits are added to your team's balance.
  </Step>
</Steps>

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

## 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):

<Steps>
  <Step title="Pay in full on Equip">
    Complete the purchase on Equip, paying the entire ₹10,000. Your credits are added immediately.
  </Step>

  <Step title="Remit the TDS to the government">
    Your finance team remits the ₹1,000 TDS amount on the government portal.
  </Step>

  <Step title="Share Form 16A with Equip">
    Email your **Form 16A** (the TDS certificate) to [hello@equip.co](mailto:hello@equip.co).
  </Step>

  <Step title="Receive your refund">
    Equip refunds the ₹1,000, or issues its equivalent in credits, whichever you prefer.
  </Step>
</Steps>

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

## Related Resources

* [How Credits Work](/how-credits-work) - Credit pricing, purchase limits, and payment methods
* [Invoices](/invoices) - Where to find and download invoices for your purchases
* [Change Billing Information](/change-billing-information) - Update the company details that appear on your invoices
* [Contact Support](/contact-support) - Reach the Equip team via chat or email