TDS Entry in Tally ERP 9 step by step procedure

TDS Entry in Tally ERP 9, is a further step of Tally.erp 9 to become a truly ERP solution.Tally Solutions Pvt. Ltd is continuously adding more and more advanced features to the software and TDS in tally erp 9 is one of the major useful features which is very useful for finance people like me.

In this post,I will explain  a general idea about TDS Entry in Tally ERP 9 and if you want to know step by step TDS configuration in tally.erp 9 then refer my post onTDS Entry in Tally ERP 9? I have uploaded a complete TDS set up the manual for tally users which you can download free of cost. I have also uploaded a TDS help file which is a pdf file will be very useful for TDS Entry in Tally ERP 9

TDS Entry in Tally ERP 9 |how to set up in Tally

Tally Software  introduced a concept of calculating TDS based on the nature of expenses. Now, you can deduct TDS on expenses whether revenue or capital nature. you must follow the step by step guide for TDS Entry in Tally ERP 9 to learn how to set tds in your accounting software.

To understand TDS in an accounting software it is better to understand what is TDS and how a manual entry will  look like. Once it is understood, TDS Entry in Tally ERP 9 will become a child’s play for a Tally user.

TDS is a tax deducted at the source that is when the supplier issue a bill,  the recipient of Services is responsible for  deduction of TDS from that bill and must credit the same to TDS payable account. the expense will be booked for the full amount, however, the supplier’s account will be credited less by the amount deducted on account of TDS

 

 

TDS Entry in Tally ERP 9 | Examples and Journal Entries

Suppose a job work executed through M/s. ABC and Company for Rs. 1 lac. Let’s see how to pass TDS Entry in Tally ERP 9 for the same

Dr. Job work Expenses Rs. 1,00,00.00

Cr. ABC & Co. 97774 (net of TDS)
Cr. TDS on payment to Contractors 2226

Now the sum so deducted towards TDS e.g. Rs. 2226 is a liability to pay it to the government within the stipulated time.

TDS Entry in Tally ERP 9 allows  deduction TDS at the time of booking of an invoice or an advance payment.

Release 3 and onwards made TDS Entry in Tally ERP 9 more stable and  easy to manage. In addition, all the required reports now can be generated by pressing a few keys only.