Configuring & using TDS





 

TDS (tax deducted at source) is the tax which is deducted at “source” I.e. at the time when payment is made. TDS is a part of tax payable by you on a certain receipt which is deducted by the payer while making payments & deposited on your behalf to the government. So primarily it's an early credit to your “would be tax liability” which gets adjusted with your “actual tax liability”. So it is not an expense or charge for you, it is just an early deduction of what might be payable by in the future. Also if a tax is not payable or less payable than the TDS, one can always claim a refund for the excess amount. TDS is deducted on various rates depending upon the nature of payment, TDS is deducted on various rates depending upon the nature of payment, and TDS Profiles in ERP2ALL have to be selected from this option after creating the TDS profile.

 




To configure a Tax Deducted at Source (TDS) profile:  Go to Accounting & Finance (AF)> Click on Config


Click on TDS profiles.



The TDS Profile landing page will be displayed; Click on Add New



Enter the name of the profile (Profile Name) and then click on the Add New Button again


The new Tax Slab details will be displayed: 

 

TDS Details:

 

Above & Including: Enter the earning amount deduction figure above & Including.

TDS Rate: Enter the Tax Deduction percentage.

Click on Save to insert the above TDS details.

 


 New Product Profile Creation & default TDS profile setting: Go to Accounting & Finance (AF)> Click on Master Data



Click on Products and select a product from the list and Click on the Edit Button:



The product details will be displayed click on 'Defaults'


 

TDS Details:

 

VDS Rate: Leave blank.

TDS Profile: Select & Set the TDS profile from the drop-down menu.

Click on Update to Save the TDS details.

 


Purchase Invoicing:
 Go to Accounting & Finance (AF)> Click on Transactions



Click Purchase Invoices and Select Purchase Invoice



A new Purchase Invoice details will be displayed as shown:



Purchase Invoice Product Details:


Purchase Invoice No: Auto-generated by the system.

Customer: Select a customer name.

Date: Select & set the Invoice date. 

Reference: Enter reference title/name.

Currency: Select the Purchase Invoice payment currency.

Exchange Rate: Enter exchange rate currency conversion amount. 

Insert Line Item details: 

Product: Select a product.

Description: Product details are auto displayed.

Quantity: Enter the Product quantity.

Price: Enter the product price.

Tax Code: Select a Tax code. 

Sales Discount: Select Purchase Discount percentage.

Net Amount: Auto-calculated by the system.

VAT Amount: Auto-calculated by the system.

SD Amount:  Auto-calculated by the system.

Select and Set the Expiry date

Set the warehouse location from the drop-down menu.

Click on Add to List to update.



An example of a Purchase invoice has been provided below:



Posting to the Ledger: Select a Purchase invoice>Click on Update Ledger. (Successful Confirmation will be displayed). The status will be displayed as posted.


Go to Accounting & Finance (AF)> Click on Transactions 



Click on Payments >Select To Supplier from the drop-down menu:



Click on New Payment.



The New Supplier Payment details window will be displayed:


 

Supplier Payment Details:

 

Supplier: Select New Supplier Name.

Account: Select the payment account.

Date: Select the payment date.

Reference: Provide the payment reference & click on save

VDS Amount:  VDS (VAT deducted at source) figure is auto-generated after supplier selection.

VDS Deducted:  VAT deducted at source after supplier Selection

Discounted: Auto-generated

Gross Payment: Enter the payment amount before TDS deduction.

Discount: Auto-generated as per purchase invoice

Net payment: Enter the payment amount after Tax deductions.

Save: Click to insert the payment details;

 


An example of a new supplier provided below for reference:



Select a Supplier payment>Click on Update Ledger. (Successful Confirmation will be displayed). The status will be displayed as posted.



To view payment voucher: Click on the Document number as shown below:



The payment voucher detail and TDS (Tax Deduction at the Source) will be displayed: 



To View in the Chart of Accounts: Go to Chart of Accounts (COA)> Click on Tax/VAT Deduction at Sources>Click Tax Deduction at Source, then Click on view Ledger to display the search details:



The view ledger input details will be displayed: 



Users must set a start date and an ending date and select a search option from the drop-down menu:



The TDS details will be displayed (to view payment voucher simply click on the Doc/Voucher Number) 




For more detailed TDS information Click on the link provided below: 

NBR: Information about TDS