TDS Example in Tally
TDS Example in Tally will help the user to get hands over Tally.erp 9.
TDS Example in Tally | SIMPLE
WAY of Using TDS
My Business Need:- I own a firm and I need consultancy services from a reputed consultancy firm Eloite. How do I account for the payments that involve a TDS.
Taking consultancy from a company requires that I need to deduct the TDS applicable and then pay the remaining amount to the service provider.
Since consultancy is being provided (Fees for Professional Or Technical Services) is applicable in this case.
Now let us go through the step by step to learn TDS Example in Tally
1. A journal entry is passed to account for the consultancy services taken, we will assume that the total service charge is Rs. 1,00,000.
Now first step is to configure our company for TDS, the easiest way to do this is through the Quick set up that has been provided
TDS Example in Tally | The step by step process with example
1) Go to gateway of Tally and then press K( go to Quick Set up)
2) Now go to Tax Deducted at Source
3) Fill in the company Details
4)Expense Ledger as
5) Fill in the Tax Ledger as
6) Party Ledger
Once the setup is done this way,
We are ready to pass a journal for the same
Go to Accounting vouchers and then press F7 for journal mode of voucher entry
1) In the Dr. mode Select Consultancy services
2) Enter 1,00,000 in the Dr. column
3) Press enter and then select Fees for Professional Or Technical Services and the assessable value is 1,00,000
4) In the Cr. Field , we give the name of the Consultancy Provider( here Eloite)
5) Press enter and select New ref and automatically the correct fields are selected like :
6) Press Enter again and then a screen is obtained as
7) Then in the second field select 10000 as the Dr. to account for the TDS
8) Keep Pressing Enter and then select TDS on consultancy and automatically 10,000 is selected .
9) The final voucher is shown as
9)Now the payment is made to the service provider – the payment is made for 90,000 obtained above .Go to the payment voucher and then select HDFC bank ( U can also keep Cash)
And in the particulars column select consultancy provider-Eloite
And then type the amount in the amount -90,000 in this case
TDS Example in Tally | How to see reports
10)Now when the payment is made to the creditor, we may need to see the TDS reports
Go to to Display- Statutory reports ->TDS Reports ->Outstandings
Select the report that you need to view , When I choose TDS Payables
Step 3 ->
Now let us make the payment to the Government and for that pass a payment voucher
Go to Gateway of Tally and then to the payment voucher.
Then Press Alt-S for auto fill of TDS details
In the section select Fees for Professional services
The deductee status be Non-company
Press Enter and come to voucher.
A break up of all the Tax Details is seen as:
Press Enter and save the journal.
Now go to Display –statutory TDS reports and then TDS Challan Reconciliation
Press F5 to reconcile.
Now when you want the correct FORM 26Q or Form 16A , You have to select the correct time period . In this case since the voucher entries have been made on October 30, 2011 therefore the time is taken to 1-4-11 to 31-12-11. The time period could also be 1-10-11 to 31-12-11.
And the correct report is obtained as :
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