TDS Voucher Entry – Frequently Asked Questions-Tally Prime

FAQ : Frequently Asked Question

FAQ 1: I have to pay Bill to Contractor for a Job Done. How do I enter Voucher  with TDS Deduction.

Like normal expense voucher, you can not  create a payment  voucher directly to pay for the expenses, deducting TDS. Instead, you have to perform following accounting entries :

  • Create the liability (e.g Journal Voucher or Purchase Voucher)  Debiting expenses (Gross Amount) , Crediting Party Account (Net Payable to Party after Deducting TDS) and  crediting TDS (TDS Deducted)
  • Create Payment Voucher to make payment of net amount payable to Party

We explain the process of Journal Voucher Entry

Journal Voucher  Entry: Create a Journal Voucher  to book the expense (F-1C). Here we describe the points exclusively related to TDS in the voucher entry.

a. Expense Ledger : At 1st Ledger Account entry at main Voucher entry screen (F-1C), enter the Expenses Ledger Account and the Gross Expense amount. A sub screen for TDS Nature entry will appear (F-1B). The default TDS Nature for the Expense would appear, which may be changed by selecting from the list of TDS Nature. You get back to the main voucher entry screen (F-1C).

  • TDS Nature of Payment for Expense Ledger : On entry of Expense Ledger Amount, you get the default TDS nature of Payment screen. Select the Nature of Payment from the list

b. Party Ledger :  At 2nd entry, select the Party Ledger Account (F-1C) to be credited to get the Bill Allocation / TDS Details screen (F-1A). At Bill Allocation / TDS Details (F-1A), enter as follows:

  • Reference Type : At Type of Ref column, select the Ref Type (Normally New Ref)
  • Reference ID : At Name column, the default Ref ID is carried, which you may change
  • Nature of Payment : At Nature of Payment , the Nature of Payment selected (at first entry) will be carried

c.TDS Ledger : At  TDS Ledger, the list of all TDS Ledger Accounts (for which you have set TDS), will appear, from which select the TDS Ledger Account

  • Assessable Amount : The Amount for the Expense Ledger Account will be carried
  • TDS Deductability  : At Deduct Now, type Yes to Deduct TDS in the current voucher
  • TDS Amount : The total TDS Amount including Surcharge / Cess / SE Cess( with  detailed breakup) is shown
  • Net Payable : At Payable Amount , the Net Amount Payable (Ledger Amount – TDS Deduction) is shown

c. TDS Ledger  : At main voucher screen (F-1C), select the TDS Ledger Account  (F-1A).The TDS deducted is carried at the Credit column.

At Main voucher screen (F-1C), enter Other Ledger  Accounts ( if any).  Save the Voucher.