Get.. Tally.ERP9 Book @ Rs.550 and TallyPrime Book @ Rs.600 TallyPrime Book @ Rs.600 Tally.ERP9 Book @ Rs.550



TallyPrime Book @ Rs.600
Tally.ERP9 Book @ Rs.550

 


 
 

FAQ on TDS (Tax Deducted at Source) in Tally.ERP9

FAQ-1 : How to Activate TDS in Tally.ERP 9 ?

How to Enable TDS in Tally.ERP 9?

   1. Ensure while company creation State and PIN Code details are provided. If these information are not mentioned, alter the Company and select

 

State: Select the appropriate State from the list.

PIN Code: Enter the Postal Index Number, which is a numerical value of six digits

The State and Pin Code fields are added to capture the state details.

 

2. In Tally.ERP 9, activate TDS in F11: Features screen. The F11: Features button is available in almost all the screens of Tally.ERP 9.

 

Gateway of Tally > Click on the F11: Features button or press F11 Key >Statutory and Taxation

 

a.      Set the option Enable Tax Deducted at Source (TDS)  to Yes

b.     Set the option Set/Alter TDS Details? to Yes  to view Company TDS Deductor Details screen

   

Activate TDS in Tally.ERP 9?

   [13-1]

 

A brief description on the fields that appear in the Company TDS Deductor Details screen

          

(i) Tax Assessment Number: Enter the Tax Assessment Number (TAN) in this field. The Tax Assessment Number (TAN) is a ten-digit alphanumeric number, issued by the Income Tax Department (ITD) to the deductors.

Only one TAN is required for different types of deductions. TAN must be quoted properly on all Challans such as: Payment for TDS, Returns, All Certificates - Issue in Form No.16/16A and correspondence with the Income-tax Department. 

The format of TAN is something like this: BLRA07884F  

  • BLR indicates the location code of the TAN allotment centre (eg: BLR for Bangalore)
  • A indicates the first alphabet of the deductor name
  • 07884 is the number within each location
  • F is the check digit for security and verification

(ii) Income Tax Circle/Ward (TDS): Enter the Income Tax Circle/Ward (TDS).  The Income Tax Department issues Income Tax Circle/Ward (TDS).

(iii) Deductor Type: Depending on your organisation, you may select the Deductor Type (Government or Others) from the list

(iv) Name of person responsible: Enter the name of the authorised person responsible for filing the TDS returns of your company.

Note: In case Tally.ERP 9 is security feature enabled, this field will be automatically filled with the user name.

(v) Designation: Enter the designation of the authorised person filing the TDS returns

FAQ-2 : How to create Expenses Ledger in Tally.ERP 9 ?

Tally.ERP 9 gives the flexibility to create

  • Separate expense ledgers for each nature of payment 
  • common expense ledger for all the nature of payments.

1. Create expense Ledger with defined Nature of Payment (separate expense ledgers for each nature of payment) 

To Create the TDS Expense Ledger

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

  • Enter the Name of the expense ledger e.g. Advertisement Expenses.
  • In Under field select the group Indirect Expenses from the List of Groups.
  • Set Inventory values are affected to No.
  • Set Is TDS Applicable to Yes.
  • In Default Nature of Payment field select Payment to Contractors (Advertisement Contractors) from the List of TDS Nature of Pymt.

Note: All the Payments/Expenses subject to TDS have to be associated with relevant predefined TDS Nature of Payments.

The completed expenses ledger is displayed as shown

Expenses Ledger in Tally.ERP 9

   [13-2]

2. Create common expense Ledger

  • Enter the Name of the expense ledger e.g. Expenses Ledger
  • In Under field select the group Indirect Expenses from the List of Groups.
  • Set Inventory values are affected to No.
  • Set Is TDS Applicable to Yes.
  • In Default Nature of Payment field select Any from the List of TDS Nature of Pymt.

The completed expenses ledger is displayed as shown

Expenses Ledger in Tally.ERP 9

   [13-3]

FAQ-3 : How to create TDS Party Ledger in Tally.ERP 9 ?

To create party ledger in Tally.ERP 9

Setup:

  • In F12: Configuration (Ledger Configuration) set Allow Advanced entries in Masters and Use Addresses for Ledger Accounts to Yes

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

  • Enter the Name of the Party Ledger e.g. Mark IT Solutions
  • Select Sundry Creditors from the List of Groups in the Under field.
  • Set Maintain balances bill-by-bill to Yes.
  • Enter the Default Credit Period, if required.
  • Set Is TDS Deductable to Yes.
  • In the Deductee Type field, select Association of Persons from the List of Deductee Type
  • Enter Mailing and Tax Information

Party Ledger in Tally.ERP 9

   [13-4]

  • Press enter to save.

FAQ-4 : How to create TDS (Tax) Ledger in Tally.ERP 9 ?

In Tally.ERP 9 you can create

  • Separate tax ledgers for each nature of payment
  • A Common tax Ledger for all the Nature of Payments

1. Create tax ledger with defined nature of payment

To create a Tax Ledger

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

  • Enter the Name of the Tax Ledger e.g. TDS – Contractors
  • Select Duties & Taxes from the List of Groups in the Under field.
  • In Type of Duty /Tax field select TDS from the Types of Duty/Tax list
  • In Nature of Payment field, select Payment to Contractors (Advertisement Contractors) from the List of TDS Nature of Payment.
  • Set Inventory values are affected to No

The completed tax ledger is displayed as shown

TDS (Tax) Ledger in Tally.ERP 9

   [13-5]

2. Create common tax ledger

  • Enter the Name of the Tax Ledger e.g. TDS Ledger
  • Select Duties & Taxes from the List of Groups in the Under field.
  • In Type of Duty /Tax field select TDS from the Types of Duty/Tax list
  • In Nature of Payment field, select Any from the List of TDS Nature of Payment.
  • Set Inventory values are affected to No

The completed tax ledger is displayed as shown

TDS (Tax) Ledger in Tally.ERP 9

   [13-6]

FAQ-5 : How to Record Expenses and Deduct TDS in Tally.ERP 9 ?

In Tally.ERP 9 you can record TDS transactions through Journal Voucher or Purchase Voucher (Account /Item Invoice Mode)

Note: Recording TDS transactions in Purchase Voucher in Voucher Mode is not supported.

Example: On 10-4-2009, ABC Company received bill from Mark IT solutions for Rs. 1,50,000 towards the Advertisement services provided.

Ensure the required ledger masters are created before recording the transaction

Case 1: Record the transaction in Journal Voucher

1. In Debit field select the expense ledger - Advertisement Expenses and mention the transaction amount of Rs. 1,50,000 in Amount - field.

2. In Credit field select the party ledger - Mark IT Solutions and enter the TDS Details as shown

Record Expenses and Deduct TDS in Tally.ERP 9

   [13-7]

Note: In this transaction we are deducting TDS in the same voucher.

3. In the Bill-wise Details screen provide the bill details as shown

Record Expenses and Deduct TDS in Tally.ERP 9

   [13-8]

4. In Credit field select the TDS ledger - TDS Contractors to account the TDS deducted.

The completed Journal Voucher is displayed as shown

Record Expenses and Deduct TDS in Tally.ERP 9

   [13-9]

Case 2: Record the transaction in Purchase Voucher

1. In Party A/c Name field select the party ledger - Mark It Solutions

2. Under Particulars select the expenses ledger - Advertisement Expenses and specify the expense amount - Rs. 1,50,000 in Amount filed

3. Under Particulars select TDS ledger- TDS- Contractors and enter TDS Details as shown

Record Expenses and Deduct TDS in Tally.ERP 9

   [13-10]

Note: TDS amount will be displayed with negative sign

4. In the Bill-wise Details screen enter the details as shown

Record Expenses and Deduct TDS in Tally.ERP 9

   [13-11]

The completed Purchase Voucher is displayed as shown

Record Expenses and Deduct TDS in Tally.ERP 9

   [13-12]

FAQ-6 : How to Record TDS Payment Entry in Tally.ERP 9

All the Tax deducted during a month is to be paid to the credit of Government on or before 7th of the next month. In case 7th of the month happens to be a Sunday or a bank holiday payment can be made on the next working day.

 

TDS amount shall be paid to the government account through any designated branches of the authorised banks, along with Income Tax Challan No.281.

 

In Tally.ERP 9, from Release 2.0 all the Tax/Duty payments have to recorded using S: Stat Payment Button to auto compute or manually enter the TDS amount to the government.

 

Procedure to record TDS payment entry

 

Go to Gateway of Tally> Accounting Vouchers > F5: Payment

·         In the Payment Voucher specify the payment date and click on S: Stat Payment (or press Alt+S)

 

Record TDS Payment Entry in Tally.ERP 9

   [13-13]

·         In Statutory Payment screen

·         In Type of Duty/Tax field select the Duty/Tax Type for which the tax payment to be made. select TDS from the list

Record TDS Payment Entry in Tally.ERP 9

   [13-14]

Note: The Types of Duty/Tax will be displayed based on the statutory features enabled in F11: Features for the Company.

·         Auto Fill Statutory Payment: Set this option to YES to auto calculate and fill the duty payable to the Government. Set this option to NO, if the user wants to manually select the duty ledger and duty bills. ABC Company wants the tax details to be auto filled to the payment voucher, hence the option Auto Fill Statutory Payments is set to Yes.

·         On setting the option of Auto Fill Statutory Payment to Yes, based on the Type of Duty/Tax selected Tally.ERP 9 displays the appropriate fields to fill the details.

·         In Section field select the section for which the payment is pending

 

Record TDS Payment Entry in Tally.ERP 9

   [13-14A]

·         In Nature of Payment field select the nature of payment towards which the payment to be made.

 

Record TDS Payment Entry in Tally.ERP 9

   [13-15]

·         In Deductee Type select the applicable deductee type

·         In Cash/Bank field select the bank through which the payment is made

Completed Statutory Payment screen is displayed as shown

 

Record TDS Payment Entry in Tally.ERP 9

   [13-16]

·         Press enter to accept. The TDS amount payable will be auto calculated and displayed with the bill reference

 

Record TDS Payment Entry in Tally.ERP 9

   [13-17]

·         Set the option Provide Details to Yes to enter the challan details

·         In Provide Details screen enter the payment details like, Period for which the payment is made, Cheque/DD number, Cheque/ DD Date, bank details,Challan Number and Date.

Completed Provide Details screen is displayed as shown

Record TDS Payment Entry in Tally.ERP 9

   [13-18]

Completed Payment Voucher is displayed as shown

 

Record TDS Payment Entry in Tally.ERP 9

   [13-19]

FAQ-7 : How to record Works Contract Transactions in Tally.ERP 9 to Calculate TDS on the net amount of Purchase ?

For Example:- ABC Company receives bill form VRG Builders & Developers for works contract given. 

Total Value of the Bill received from VRG Builders & Developers is Rs. 58925/-
Purchase cost of Work contract is Rs.54000/-
Vat @ 5% is Rs. 2700/-
Service Tax @ 4.12% is Rs.2225/-

TDS @ 1% to be Deducted on the above Bill

Steps to record the Works Contract transactions are:

Step 1: Create Ledger Masters

Step 2:  Record Purchase Voucher (Account Invoice Mode)

Step 3: Record a Payment Voucher (payment to party)

Step 4: Check TDS Computation

Step 1: Create Ledger Masters

i. Party Ledger (supplier): Create VRG Builders & Developers ledger > under Sundry Creditors > enable the option Is Service Tax Applicable to Yes > enable the option Is TDS Deductable to Yes > in Deductee Type field select Company - Resident

ii. Purchase Ledger: Create Works Contract Purchases ledger > under Purchase Accounts 

  • Enable the option Is Service Tax Applicable to Yes > in Category Name screen select Works Contract Service 
  • Enable the option  Used in VAT Returns to Yes > select VAT/Tax Class as Purchases @ 5%
  •  Enable the option Is TDS Applicable to Yes > in Nature of Payment field select Payment to Sub-Contractors

iii. VAT Ledger: Create Vat @ 5% ledger > under Duties & Taxes > select VAT in Type of Duty/Tax field > VAT/Tax Class as Input VAT @ 5% > enable the option Is TDS Applicable to Yes > select the Nature of Payment as Payment to Sub-Contractors

iv. Service Tax Ledger: Create Service Tax @ 4.12% ledger > under Duties & Taxes > select Service Tax in Type of Duty/Tax field > Category Name as Works Contract Service > enable the option Is TDS Applicable to Yes > select the Nature of Payment as Payment to Sub-Contractors

v. TDS Ledger: Create TDS Ledger > under Duties & Taxes > select TDS in Type of Duty/Tax field > Nature of Payment as Payment to Sub-Contractors

Step 2:  Record Purchase Voucher (Account Invoice Mode)

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

Note: In F12: Configuration set the option Allow Alteration of TDS Nature of Payment in Expenses to Yes

  • In the Party A/c Name field select Party Ledger
  • Under Particulars select the Purchase Ledger and specify the amount as 54,000 and press enter to view TDS Nature of Payment Details screen.
  • In TDS Nature of Payment Details by default the Nature of Payment selected in the ledger will be displayed. In Assessable Value field accept the default amount of Rs.54,000

Works Contract Transactions in Tally.ERP 9 to Calculate TDS

   [13-20]

  • Under Particulars select the VAT ledger, VAT amount will be calculated and displayed automatically. Press enter to view TDS Nature of Payment Details screen, accept the default details.
  • Under Particulars select Service Tax Ledger. In the Service Tax Computation screen change the service tax percentage to 4% (as service Tax charged on works contract is 4%). Service tax will be calculated based on the Service Tax Rate defined. In TDS Nature of Payment Details screen, accept the default details.

Works Contract Transactions in Tally.ERP 9 to Calculate TDS

   [13-21]

  • Under Particulars select TDS ledger and press enter to view the TDS Details screen. Observe TDS is calculated on the Total Amount (Work Contract Purchase Value + VAT + Service Tax = 58924.80).

Purchase Entry is displayed as shown

Works Contract Transactions in Tally.ERP 9 to Calculate TDS

   [13-22]

Note: TDS deducted is displayed with Negative Sign.

In Bill-wise Details screen select the reference details as shown

Works Contract Transactions in Tally.ERP 9 to Calculate TDS

   [13-23]

Completed Purchase Voucher is as shown below

Works Contract Transactions in Tally.ERP 9 to Calculate TDS

   [13-24]

Step 3: Record a Payment Entry

Make the payment to the party and the payment voucher will be dispalyed as shown

Works Contract Transactions in Tally.ERP 9 to Calculate TDS

   [13-25]

Step 4: Check TDS Computation

Go to Gateway of Tally > Display > Statutory Reports > TDS Reports > Computation

Works Contract Transactions in Tally.ERP 9 to Calculate TDS

   [13-26]

Similarly you can check Input Credit Form and VAT Computation reports to view the details of Service Tax and VAT

FAQ-8 : How Calculateto Service Tax on total Transaction Amount including TDS in Tally.ERP 9 ?

How to Calculate Service Tax on total transaction amount including TDS ?

For the accurate calculation of Service Tax and TDS follow the given steps

1. Book the Expenses and Service Tax through Purchase Voucher as shown

2. Deduct TDS in a separate Journal Voucher using of Alt + S: TDS Deduction 

3. Make the Payment to party

4. Check the Service-Tax Input credit Form -report displays the realised value & total credit as shown below

Step1. Book the Expenses and Service Tax through Purchase Voucher as shown

Select the Expenses ledger and allocate the entire amount to the applicable TDS Nature of Payment

Service Tax on total Transaction Amount including TDS in Tally.ERP 9

   [13-27]

Service Tax on total Transaction Amount including TDS in Tally.ERP 9

   [13-28]

Select the Input Service Tax Ledger and in the Service Tax Bill-wise details screen select the default bill details

Service Tax on total Transaction Amount including TDS in Tally.ERP 9

   [13-29]

In the Expense Allocation screen select the applicable TDS Nature of Payment

Note: TDS Nature of Payment for the Input Service Tax Ledger as Even on the service Tax amount TDS needs to deducted.

Service Tax on total Transaction Amount including TDS in Tally.ERP 9

   [13-30]

In the TDS Details screen select the details as shown

Service Tax on total Transaction Amount including TDS in Tally.ERP 9

   [13-31]

In the Bill-wise Details screen enter the bill references as shown

Service Tax on total Transaction Amount including TDS in Tally.ERP 9

   [13-32]

Save the purchase voucher

Adjust the Bill Number - 1 and save the voucher

 

Service Tax on total Transaction Amount including TDS in Tally.ERP 9

   [13-33]

Step 2. Deduct TDS in a separate Journal Voucher using of Alt + S: TDS Deduction option as shown

 

Service Tax on total Transaction Amount including TDS in Tally.ERP 9

   [13-34]

Service Tax on total Transaction Amount including TDS in Tally.ERP 9

   [13-35]

Service Tax on total Transaction Amount including TDS in Tally.ERP 9

   [13-36]

Step 3. Make the Payment to party

 

Select Mrs. Rao and in the Bill-wise Details screen select the bill reference as shown

 

Service Tax on total Transaction Amount including TDS in Tally.ERP 9

   [13-37]

Save the Payment Voucher

 

Service Tax on total Transaction Amount including TDS in Tally.ERP 9

   [13-38]

Step 4. Check the Service-Tax Input credit Form -report displays the realised value & total credit as shown below

 

Service Tax on total Transaction Amount including TDS in Tally.ERP 9

   [13-39]

FAQ-9 : How to Account Sales Commission and Deduct TDS in the same voucher ?

Solution

In Tally.ERP 9, from release 1.8 you can record sales commission transactions in Credit Note and Deduct TDS on Commission

ExampleABC Company sells the goods to partners on a condition that, on each sales Rs.100 will be paid as sales commission. To account sales commission separate expense entry is not booked in Journal but directly a credit note is raised in favour of the partner (to reduce party outstandings) and TDS is deducted on commission. As on 15-10-2009 ABC Company has to pay Rs. 50,000 commission (sales) to partner Mark IT Solutions.

1. Record the transaction in Credit Note

Set up: Ensure in F11: Features (F1: Accounting Features) following options are set to Yes

  • Use Debit/Credit Notes
  • Use Invoice mode for Credit Notes

Go to Gateway of Tally > Accounting Vouchers > Ctrl + F8: Credit Note (Account Invoice Mode)

1.     In Party A/c Name field select Mark IT Solutions

2.     Under Particulars field select Commission Charges Ledger to account commission expenses

3.     In Amount field enter Rs.50,000 (total commission due for the party)

4.     Under Particulars select TDS - Commission Or Brokerage ledger to deduct TDS on the payment of commission.

5.     In TDS Details screen

o    In Type of Ref field select New Ref

o    In Name field accept the default Reference Number –CNote/ 3-1

o    In Nature of Payment field select Commission Or Brokerage will be defaulted automatically

o    Assessable Amount and TDS Amount field details are defaulted automatically, based on the information provided in the voucher

Account Sales Commission and Deduct TDS in Tally.ERP9

   [13-40]

TDS Deducted on Commission Rs. 5000 will be displayed with Negative sign

     6. In Bill-wise Details screen

  • In Type of Ref field select New Ref (if Required you can select Agst Ref to adjust against the sales bill)
  • In Name field enter the Bill Reference Number as CN/001
  • Accept the default amount allocation and Dr/Cr. By default Tally.ERP 9 displays the Bill amount in the amount field as the credit balance.
  • Press Enter, select New Ref as Type of Ref and enter Bill name as CN/001
  • Skip the Due Date or Credit Days field and accept the default amount allocation and Dr/Cr. By default Tally.ERP 9 displays the Tax amount in the amount field as the debit balance.

Account Sales Commission and Deduct TDS in Tally.ERP9

   [13-41]

Completed Credit Note voucher is displayed as shown

Account Sales Commission and Deduct TDS in Tally.ERP9

   [13-42]

     7. Press Enter to accept and save.

FAQ-10 : How to Reverse Excess TDS Deducted in Tally.ERP 9 ?

Solution

In case of partial cancellation of transaction (s), the expenses and excess TDS deducted needs to be reversed. In Tally.ERP 9, such reversal of expenses and TDS is possible only when the cancellation of transaction is made before the payment of TDS to the Government.

In Tally.ERP 9, reversal of expenses can be accounted using Debit Note and reversal of TDS deducted can be accounted using Credit Note.

Example: On 17-10-2009 ABC Company received bill from Pheonix Agencies for Rs. 75,000 towards Advertising expenses. On 21-10-2009 ABC Company cancelled the advertisement services to the extent of Rs.25,000 and Expenses and TDS deducted are reversed.

To account these Transaction follow the given steps

1. Book the Expenses in Journal Voucher

2. Reverse the Expenses (Debit Note)

3.  Reverse the excess TDS Deducted (Credit Note)

Step 1: Book the Expenses in Journal Voucher

Before recording the transaction ensure all the masters are created.

Go to Gateway of Tally > Accounting Vouchers > F7: Journal

  • In Debit field select Advertisement Expenses and enter 75,000 in the Amount field.
  • In Credit field select Phoenix Agencies and press enter to view TDS Details screen
  • In TDS Details screen,
    • Select Type of Ref as New Ref.
    • In Name filed accept default reference number
    • Select Payments to Contractors (advertisement Contractors) in Nature of payment field
    • Select the TDS Ledger
    • In Assessable Amount field amount specified against the expenses ledger will be displayed
    • Set Yes in Deduct now field

Reverse Excess TDS Deducted in Tally.ERP 9?

   [13-43]

  • Payable Amount as calculated in the TDS Details screen will be defaulted in the Party’s Amount (Credit) field.
  • In Bill-wise Details screen
    • Select New Ref as the Type of Ref
    • In the Name field enter the Bill name as Bill -0178
    • Skip the Due Date or Credit Days field
    • Accept the default amount allocation and Dr/Cr. By default Tally.ERP 9 displays the Bill amount in the amount field as the credit balance.
    • Press Enter, select New Ref as Type of Ref and Enter Bill name as Bill -0178
    • Skip the Due Date or Credit Days field and accept the default amount allocation and Dr/Cr. By default Tally.ERP 9 displays the Tax amount in the amount field as the debit balance.
  • In the Credit field select TDS – Contractor from the List of Ledger Accounts.
  • In the Amount field, Rs. 1500 [Bill amount (75,000) – Pending Amount (73,500)] is displayed automatically.

Reverse Excess TDS Deducted in Tally.ERP 9?

   [13-44]

  • Press Enter to accept and save.

Step 2: Reverse the Expenses (Debit Note)

Go to Gateway of Tally > Accounting Vouchers > Ctrl+F9: Debit Note

  • Press Alt + I for Account Invoice mode.
  • In Party’s A/c Name field select Pheonix Agencies from the List of Ledger Accounts.
  • Under Particulars select Advertisement Expenses and enter Rs. 25,000 in the Amount field.
  • In TDS Details screen
    • In Type of Ref select Agst Ref
    • In Name field, select Jurl/16-1 to adjust the reversal of expenses and select Payments to Contractors (advertisement Contractors) in Nature of Payment field
    • Based on the Tax Reference Number selected, Tally.ERP 9 defaults TDS Duty Ledger. In Assessable Value field Rs. 25000 will be displayed indicating that Rs.25000 is reversed against the expenses booked on 17-10-2009

Reverse Excess TDS Deducted in Tally.ERP 9?

   [13-45]

Note: Observe TDS Amount is not displayed as we are not reversing TDS in Debit Note

  • In Bill–wise Details screen, select Agst Ref as the Type of Ref. In the Name field select Bill-0178 dated 17-10-2009 from the Pending Bills to reverse the expenses.

Reverse Excess TDS Deducted in Tally.ERP 9?

   [13-46]

 

Reverse Excess TDS Deducted in Tally.ERP 9?

   [13-47]

  • Press Enter to accept and save.

Step 3: Reverse the excess TDS Deducted (Credit Note)

Go to Gateway of Tally > Accounting Vouchers > Ctrl+F8: Credit Note

  • Press Alt + I for Account Invoice mode.
  • In Party’s A/c Name field select Pheonix Agencies
  • Under Particulars select TDS - Contractor and press enter to view TDS Details screen
  • In TDS Details screen, select Agst Ref in Type of Ref, in Name field select Jurl/16-1 to adjust the reversal of TDS. Based on the Tax Reference Number selected, Tally.ERP 9 defaults Nature of Payment and TDS Amount

Reverse Excess TDS Deducted in Tally.ERP 9?

   [13-48]

  • In Bill–wise Details screen, select Agst Ref as the Type of Ref. In the Name field select Bill-0178 dated 17-10-2009 from the Pending Bills to reverse the TDS.

Reverse Excess TDS Deducted in Tally.ERP 9?

   [13-49]

Reverse Excess TDS Deducted in Tally.ERP 9?

   [13-50]

  • Press Enter to accept and save.

FAQ-11 : How to account the receipts towards the sale of services, where the service receiver has deducted TDS and made the balance payment to the Service provider and Tally.ERP displays complete service bill amount including TDS amount in Service Tax payable Report ?

Solution

Step 1: Record Service Sales Invoice

FAQ on TDS in Tally.ERP9

   [13-51]

Step 2: Record a receipt voucher to account the receipt towards the services sold

Assume that service receiver has made full payment towards the above sales after deducting TDS on Professional Services. 

In Credit field select the party ledger - Birla Associates and press enter. Service Tax Details screen appears. In Service Tax Details screen select End of List.

FAQ on TDS in Tally.ERP9

   [13-52]

In Amount field enter the actual amount received from the customer. ABC Company received Rs. 32,966 from the customer.

In Bill-wise Details screen select the appropriate bill towards which the payment is received. In Amount field the actual amount received will be displayed.

 

FAQ on TDS in Tally.ERP9

   [13-53]

 

In Debit field, select the Bank/Cash ledger depending on the nature of receipt. Here the receipt is in the form of Cheque hence Bank ledger is selected.

 

Completed receipt entry appears as shown:

 

FAQ on TDS in Tally.ERP9

   [13-54]

Save the Receipt Voucher.

 

Step 3: Accounting the TDS Deducted to wards the services provided

 

In Tally.ERP 9 Releases 1.8 onwards provision has been made to account the TDS amount on the servcies provided and capture the details in appropriate reports. To account these types of adjustments - Service Consideration Adjustments flag has been provided in Journal Voucher (This flag will be avaialbe only when the vocuher class is created for Journal Voucher)

 

1. Create Service Tax Adjustment Class in Journal Voucher

 

Go to Gateway of Tally > Accounts Info. > Voucher Types > Alter > select Journal

 

In Voucher Type Alteration screen

  • Tab Down to Name of Class field and enter the class name as Service Tax Adjustments

FAQ on TDS in Tally.ERP9

   [13-55]

  • In Voucher Type of Class screen
    • Enable the option Use Class for Service Tax Adjustments as “YES

 

FAQ on TDS in Tally.ERP9

   [13-56]

 

2. Create ledger to account TDS Amount

 

Create the ledger under Crrent Asets as shown below

 

FAQ on TDS in Tally.ERP9

   [13-57]

3. Record the transaction in Journal Voucher

 

Go to Gateway of Tally > Accounting Vocuhers > F7: Journal Voucher

 

In Change Voucher Type Class screen, select Service Tax Adjustments in Class field 

 

 

FAQ on TDS in Tally.ERP9

   [13-58]

 

In  Used for field select the flag “Service Consideration Adjustments

 

FAQ on TDS in Tally.ERP9

   [13-59]

In Debit field select TDS Receivable ledger (grouped under current assets or any group) and enter the amount which is deducted as TDS. In Debit (amount) field enter Rs. 3,663[Total Bill Amount (36,629) - Amount Received (32,966)].

 

In Credit field select the Service Receiver - Birla Associates and press enter to view Service Tax Details screen. In Service Tax Details screen, select End of List.

 

 

FAQ on TDS in Tally.ERP9

   [13-60]

 

In Bill-wise Details screen select the appropriate bill to adjust the amount deducted as TDS.

 

 

FAQ on TDS in Tally.ERP9

   [13-61]

 

The completed Journal Voucher appears as shown:

 

FAQ on TDS in Tally.ERP9

   [13-62]

Save the Journal Voucher.

 

Note: This adjustment entry can be booked based on the TDS certificates received from service receiver periodically or yearly depending upon users requirement.

FAQ-12 : TDS on Advance Payments to Party

Query

Is it possible to account Advance payments to party and deduct  TDS on such advances?  How to adjust the advances paid to the party towards the Bill?

Example: On 15-04-2010, ABC Company made an advance payment of Rs.50,000 to Pheonix Agencies towards Advertisement Expenses. While making payment tax was deducted form the Source. Advances were adjusted towards the bill of Rs.2,00,000 dated 26-04-2010.

Solution

Tally.ERP 9 allows accounting advance payments to party and deduct TDS on the advances and later adjust the advance paid towards the Bill.

Follow the given procedure to account advances and adjust the advances towards the Bill

Step 1: Record a Payment Voucher (to account advances)

To create a Payment Voucher

Go to Gateway of Tally > Accounting Vouchers > F5: Payment.

Set up

In F12: configure (Payment Configuration)

  • Ensure Use Single Entry mode for Pymt/Rcpt/Contra is set to Yes

1. In Account field select the Bank Ledger. E.g. Canara Bank

2. Under Particulars select the party ledger Pheonix Agencies. In Amount field enter the amount paid as advance and press enter to view Bill-wise Details screen

3. In Bill-wise Details screen

  • In Type of Ref field select the reference as Advance
  • In Name field enter the bill name as Adv-201
  • Amount will be displayed automatically

TDS on Advance Payments to Party in Tally.ERP9

   [13-63]

4. Accept the Bill-wise Details screen

5. Under Particulars select tax ledger, TDS - Contractor and press enter to view TDS Details screen

TDS Details screen appears as shown

TDS on Advance Payments to Party in Tally.ERP9

   [13-64]

6. Press Enter to accept the TDS Details. Tax deducted will be displayed with negative sign.

The completed Payment Voucher is displayed as shown

TDS on Advance Payments to Party in Tally.ERP9

   [13-65]

7. Press Enter to save.

Step 2: Record a Journal Voucher (to account the bill & adjust the advances)

To account the bill received and adjustment of advances paid

Go to Gateway of Tally > Accounting Vouchers > F7: Journal

1. In Debit field select the expenses ledger - Advertisement Expenses. In Debit amount field enter the total bill amount of Rs. 2,00,000

2. In Credit field select the Party Ledger - Pheonix Agencies. Press Enter to view TDS Details screen

3. In TDS Details screen

  • In Type of Ref field select Agst Ref
  • In Name field select Pymt/1-2 from the Pending Tax Bills. On selection of Tax bill Nature of Payment, TDS Duty Ledger, Assessable Amount and Payable Amount will be defaulted automatically and application will not allow altering the details.

TDS on Advance Payments to Party in Tally.ERP9

   [13-66]

  • In Type of Ref field select New Ref.
  • In Name field Tax Bill reference will be defaulted automatically
  • In Nature of Payment select Payment to Contractors (Advertisement Contractors)
  • In TDS Duty Ledger field select TDS – Contractors and set Deduct Now to Yes.

The completed TDS Details screen is displayed as shown

TDS on Advance Payments to Party in Tally.ERP9

   [13-67]

Observe, the advance of Rs. 50,000 is adjusted towards the bill and TDS is calculated only on the balance amount of Rs. 1,50,000.

4. In Bill-wise Details screen select the bill reference as shown

  • In Type of Ref select Agst Ref, in Name field select the bill Adv-201 dated 15-4-2010 form the pending bills and in Amount field mention the amount adjusted as Rs. 50,000.
  • In Type of Ref select New Ref, in Name field enter the bill name as PA/152/10-11 and in amount filed mention the amount pending for payment
  • In Type of Ref select New Ref, in Name field enter the bill name as PA/152/10-11 and in amount filed tax deducted will be defaulted.

TDS on Advance Payments to Party in Tally.ERP9

   [13-68]

5. In Credit field select the TDS ledger TDS- Contractor. Tax deducted - Rs. 3,000 (on 1,50,000) will be defaulted automatically.

The completed journal voucher is displayed as shown

TDS on Advance Payments to Party in Tally.ERP9

   [13-69]

6. Press Enter to save.

FAQ-13 : Is it possible to account Advance payments to party and deduct TDS on such advances? How to adjust the advances paid to the party towards the Bill ?

ExampleOn 15-04-2010, ABC Company made an advance payment of Rs.50,000 to Pheonix Agencies towards Advertisement Expenses. While making payment tax was deducted form the Source. Advances were adjusted towards the bill of Rs.2,00,000 dated 26-04-2010.

Solution

Tally.ERP 9 allows accounting advance payments to party and deduct TDS on the advances and later adjust the advance paid towards the Bill.

Follow the given procedure to account advances and adjust the advances towards the Bill

Step 1: Record a Payment Voucher (to account advances)

To create a Payment Voucher

Go to Gateway of Tally > Accounting Vouchers > F5: Payment.

Set up

In F12: configure (Payment Configuration)

  • Ensure Use Single Entry mode for Pymt/Rcpt/Contra is set to Yes

1. In Account field select the Bank Ledger. E.g. Canara Bank

2. Under Particulars select the party ledger Pheonix Agencies. In Amount field enter the amount paid as advance and press enter to view Bill-wise Details screen

3. In Bill-wise Details screen

  • In Type of Ref field select the reference as Advance
  • In Name field enter the bill name as Adv-201
  • Amount will be displayed automatically

FAQ on TDS  in Tally.ERP9

   [13-63]

4. Accept the Bill-wise Details screen

5. Under Particulars select tax ledger, TDS - Contractor and press enter to view TDS Details screen

TDS Details screen appears as shown

FAQ on TDS  in Tally.ERP9

   [13-64]

6. Press Enter to accept the TDS Details. Tax deducted will be displayed with negative sign.

The completed Payment Voucher is displayed as shown

FAQ on TDS  in Tally.ERP9

   [13-65]

7. Press Enter to save.

Step 2: Record a Journal Voucher (to account the bill & adjust the advances)

To account the bill received and adjustment of advances paid

Go to Gateway of Tally > Accounting Vouchers > F7: Journal

1. In Debit field select the expenses ledger - Advertisement Expenses. In Debit amount field enter the total bill amount of Rs. 2,00,000

2. In Credit field select the Party Ledger - Pheonix Agencies. Press Enter to view TDS Details screen

3. In TDS Details screen

  • In Type of Ref field select Agst Ref
  • In Name field select Pymt/1-2 from the Pending Tax Bills. On selection of Tax bill Nature of Payment, TDS Duty Ledger, Assessable Amount and Payable Amount will be defaulted automatically and application will not allow altering the details.

FAQ on TDS  in Tally.ERP9

   [13-66]

  • In Type of Ref field select New Ref.
  • In Name field Tax Bill reference will be defaulted automatically
  • In Nature of Payment select Payment to Contractors (Advertisement Contractors)
  • In TDS Duty Ledger field select TDS – Contractors and set Deduct Now to Yes.

The completed TDS Details screen is displayed as shown

FAQ on TDS  in Tally.ERP9

   [13-67]

Observe, the advance of Rs. 50,000 is adjusted towards the bill and TDS is calculated only on the balance amount of Rs. 1,50,000.

4. In Bill-wise Details screen select the bill reference as shown

  • In Type of Ref select Agst Ref, in Name field select the bill Adv-201 dated 15-4-2010 form the pending bills and in Amount field mention the amount adjusted as Rs. 50,000.
  • In Type of Ref select New Ref, in Name field enter the bill name as PA/152/10-11 and in amount filed mention the amount pending for payment
  • In Type of Ref select New Ref, in Name field enter the bill name as PA/152/10-11 and in amount filed tax deducted will be defaulted.

FAQ on TDS  in Tally.ERP9

   [13-68]

5. In Credit field select the TDS ledger TDS- Contractor. Tax deducted - Rs. 3,000 (on 1,50,000) will be defaulted automatically.

The completed journal voucher is displayed as shown

FAQ on TDS  in Tally.ERP9

   [13-69]

6. Press Enter to save.
 


Get.. TallyPrime Book (Advanced Usage) @ Rs. 600

Get..Tally.ERP9 Book (Advanced Usage) @ Rs. 550


 

Get..TallyPrime Book (Advanced Usage)
@ Rs. 600 !

17 Chapters in TallyPrime Book + 45 Practical Assignment with GST in TallyPrime & All features are described with Practical Problems with Solutions.

Buy Now

TallyPrime Book (Advanced Usage) @ Rs.600

Get..Tally.ERP9 Book (Advanced Usage)
@ Rs. 550 !

18 Chapters in Tally.ERP9 Book + 46 Practical Assignment with GST in Tally.ERP9 & All features are described with Practical Problems with Solutions.

Buy Now

Tally.ERP9 Book (Advanced Usage) @ Rs.550

 

Disclaimer :
The names of Companies and persons used in this Website have been used for illustrative purposes only.
The visitors may visit www.tallysolutions.com , the web site of Tally Solutions Pvt. Ltd. for resolving their doubts or for clarifications

Trademark :
Tally,TallyPrime,Tally GST,TallyERP9 GST, Tally9, Tally.ERP, Tally.ERP –9, Tally.Server 9, Tally.NET & Power of Simplicity are either registered trademarks or trademarks of Tally Solutions Pvt. Ltd. in India and/or other countries. All other trademarks are properties of their respective owners. This Website is not associated with any product or vendor mentioned in this Website.
SWAYAM EDUCATION
Mandal Bagicha, Hemkapada,
Sunhat, Balasore-756002 ( Odisha )-India
eMail ID : tallyerp9bookorder@gmail.com
Web : www.tallyerp9book.com
Mob : 09437264738

| About | Privacy Policy | Tally.ERP 9 Book ORDER | TallyPrime Book ORDER |
© 2021 : www.tallyerp9book.com