Tally ERP 9 Notes : TDS ( Tax Deducted  at Sources )

 

Scenario: Expense Booking

Creating an Expense Ledger

 

To create an expense ledger

·         Go to Gateway of Tally > Accounts Info. > Ledgers > Create.

·         Enter the Name.

·         Select Indirect Expenses as the group name in the Under field.

·         Set Inventory values are affected to No.

·         Set Is TDS Applicable to Applicable.

·         Select the Nature of Payment from the List of Nature of Payments.

 

Creating a Party Ledger

To create a party ledger

·         Go to Gateway of Tally > Accounts Info. > Ledgers > Create.

·         Enter the Name.

·         Select Sundry Creditor as the group name in the Under field.

·         Enable Maintain bill-by-bill, if required.

·         Set Is TDS Applicable to Yes.

·         Select a Deductee Type.

·         Enable Deduct TDS in Same Voucher, if required.

·         Enter the Name of the service provider under Mailing Details.

·         Enter the address.

·         Select the Country and State.

·          Enter the PIN Code.

·         Enable Provide Bank Details, if required.

·         Enter the PAN under Tax Information.

·         Enable the option Provide PAN Details to enter PAN details of the party.

 

Booking Expense

·         Go to Gateway of Tally > Accounting Vouchers > F9: Purchase.

·         Select name of the party in the Party’s A/c Name field.

·         Select the expense ledger under Particulars.

·         Enter the expense amount under Amount.

·         Select the TDS duty ledger, the duty value will be automatically calculated and displayed.

·         Save the expense booking voucher.

 

Purchase with TDS

·         Go to Gateway of Tally > Accounting Vouchers > F9: Purchase.

·         Select name of the party in the Party’s A/c Name field.

·         Select the expense ledger under Particulars.

·         Enter the expense amount under Amount, and press Enter.

·         Select the Nature of Payment in the Expense Allocation screen.

·         Select the TDS duty ledger, the duty value will be automatically deducted and displayed

·         Save the expense booking voucher.

 

JV for TDS

 Record journal voucher to deduct TDS

To create a journal voucher to book expenses

·         Go to Gateway of Tally > Accounting Voucher > F7: Journal.

·         Debit the party ledger and enter the tax amount.

·         Press Enter.

·         Enter the Bill-wise Details, as required.

·         Press Enter.

·         Select the TDS ledger, amount will be automatically filled in the Amount field.

·         Save the deduction transaction.

 

Cash Purchase

 

Scenario: Record a cash purchase with TDS

·         Go to Gateway of Tally > Accounting Vouchers > F9: Purchase.

·         Select cash ledger in the Party’s A/c Name field.

·         Select the expense ledger under Particulars.

·         Enter the expense amount under Amount, and press Enter.

·         Select the Nature of Payment in the Expense Allocation screen.

·         Select the TDS duty ledger.

·         Enter the party name, PAN, and select Deductee Type in the Party Details screen.

 

The duty value will be automatically deducted and displayed.

·         Save the cash purchase transaction.

 

 

Scenario: Recording Advance and Booking Expenses using JV

Record Advance Payment Entry for TDS Expense

·         Go to Gateway of Tally > Accounting Voucher > F5: Payment.

·         Debit the party ledger, and enter the amount.

·         Press Enter.

·         Select Advance as the method of adjust in the Type of Ref field of Bill-wise Details screen.

·         Press Enter.

·         Credit the TDS ledger.

·         Select the Nature of Payment in the Expense Allocation screen.

·         Press Enter, amount will be automatically filled in the Amount field.

·         Credit the Cash/Bank ledger, amount will be displayed automatically.

·         Save the deduction transaction.

 

 

Book the Expense using the JV

·        *  Go to Gateway of Tally > Accounting Vouchers > F7: Journal.

·         * Debit the expense ledger.

·         * Enter the expense amount under Debit, and press Enter.

·         * Select Agst Ref as the method of adjustment, and select the advance payment entry recorded.

·         * Press Enter.

·         * Credit the expense ledger.

·         Save the expense booking transaction.