In the previous post, we saw ‘How to create TDS Nature of Payment and TDS Ledgers?‘, now we will see how to record TDS entry in Tally?

How to Record TDS Entry in Tally?

Record TDS on Purchases

For example we want to purchase software for our office use so let’s see steps to record entry:

1. First Create ‘TDS Nature of Payment’

From the gateway of the tally press ‘C’ then select ‘TDS Nature of Payment’ under the ‘Statutory Master’

OR

Press ‘ALT’+G’ select ‘Create Master’ then select ‘TDS Nature of Payment’ under the ‘Statutory Master’

After that Enter the Name of the nature of payment as ‘Payment on Acquisition of Software’

Enter 194J and 94J in the fields Section and Payment Code, respectively and enter the details as applicable.

Rate Applicable with PAN 10% Without PAN 20%

Press ‘CTRL +A’ to save it

Note: This is an example only for understanding purpose actual rate and section in TDS may vary case to case.

2. Enable TDS Applicable in Purchases Account

To do that from the gateway of the tally press ‘A’ or select ‘Alter’ after that select ‘Ledger’ now select ‘Purchases’ ledger.

In ‘Statutory Details’ – Is TDS applicable select it to ‘Applicable’

After that select the ‘Nature of Payment’ – ‘Payment on Acquisition of software’ as above we created. Enter the date applicable from.

Press ‘CTRL + A’ to save it.

3. Create Party Account (from where Software to be purchase)

From the gateway of tally press ‘C’ and select the ‘Ledger’ press enter.

Name: Microsoft

Under: Sundry Creditors

Is TDS applicable: ”YES”

Deductee type: Company Resident

Enter the PAN details: HGXP2578J ( Note: If PAN details are furnished then TDS applicable 10% else 20%)

Press ‘CTRL +A’ to save it.

4. Create TDS Ledger

From the gateway of tally press ‘C’ select the ‘Ledger’ and press enter

Enter/ Select the following details:

Name: TDS

Under: Duties and Taxes

Type of duty/tax: TDS

Nature of Payment: Payment on Acquisition of software

Press ‘CTRL + A’ to save it.

5. Let’s Record TDS Entry

From the gateway of tally press ‘V’ press ‘F9’ to enable purchase voucher.

After that press ‘CTRL + H’ to change the mode to ‘Accounting Invoice’

Enter/ Select the following details:

Press ‘F2′ to change the date ’02-06-2020’

Supplier Invoice No.: 1/MH-SF

Party A/c name: ‘Microsoft’

Particulars: ‘Purchases’ enter the amount ‘100000’.

Select the SGST and CGST ledger amount will be auto calculated.

Note: Learn to create GST ledger visit this link: ‘How to create GST Ledger?’

Select the TDS ledger as above we created amount will be auto calculated

Press ‘CTRL + I’ or select ‘More Details’ and select ‘TDS-Tax Analysis’ to check the TDS calculation details.

Press ‘CTRL + A’ to save it.

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