Tuesday, May 21, 2013

TDS In Tally (Tutorial - 1)

TDS TUTORIAL -1

TRANSACTIONS

Transactions No.1:

01.05.2013: XYZ Company received a bill from M/s.Indian Shipping services Pvt Ltd., for 100,000 towards C&F Charges.
Transactions No.2:
02.05.2013: XYZ Company received a bill from M/s.B.M.Shipping Services Ltd., for Rs.80,000 towards C&F Charges.
Transactions No.3:
03.06.2013: XYZ Company paid TDS (under section 194C) of Rs.3,600/- through ICICI Bank (Cheque,  No: 123456) for the month of May 2013.

Note: You Must use Tally new version to enable Quick setup option. (Otherwise upgrade your Tally version)

FOLLOW THE BELOW SIMPLE STEPS

STEP 1

TDS Setup
Create Expenses Ledgers
Create Tax Ledgers
Create Party Ledgers & Bank Ledger

STEP 2

Enter Journal Vouchers

STEP 3

Enter Payment Vouchers
Print TDS Challan No.281
 
Workings is very useful for better understanding about all Transactions. We request you to, kindly read working before start this tutorial . Read Workings

TDS Setup: This is one time process. If you already setup TDS settings in your tally, ignore this process. If you are not setup TDS settings, Read TDS Setup Tutorial.

Create Expenses Ledgers:For the above Transactions, you will be create only one Expenses Ledger. Because both transactions are relating to C&F Charges. Follow these steps to create C&F Charges Ledger.

> Gateway of Tally > QuicK Setup > Tax Deducted at Source > X: Expense Ledgers






Name of Ledger
Under
Is TDS Applic
able
Default Nature of payment
C&F Charges
Indirect Expenses
Yes
Payment to sub-contractors
Press "Ctrl+A" to save the ledger


Create Tax Ledgers:For the above Transactions, you will be create only one Tax Ledger. Because both transactions are relating to same TDS Section (194C Payment to sub-contractors). Follow the below steps to create Tax Ledger.

> Gateway of Tally > QuicK Setup > Tax Deducted at Source > T: Tax Ledgers



Name of Ledger
Under
Default Nature of payment
TDS on C&F Charges
Duties & Taxes
Payment to sub-contractors
 Press "Ctrl+A" to save the ledger


Create PartyLedgers:For the above Transactions, you will be create two Party Ledgers. Because both transactions are relating to separate parties (i.e, Indian Shipping services Pvt Ltd., & B.M.Shipping Services Ltd.,). so create these two parties ledgers. 

> Gateway of Tally > QuicK Setup > Tax Deducted at Source > A: Party Ledgers



Name of Ledger
Under
Is TDS Applicable
Deductee Type
PAN/IT No


Indian Shipping Services Pvt Ltd.,
Sundry Creditor
Yes
Company - Resident
AAACI2222B

B.M.Shipping  Services Ltd.,
Sundry Creditor
Yes
Company - Resident
BBBCB3333C

 Press "Ctrl+A" to save the ledger


Create Bank Ledger: Every company must have bank Account. If you already create your bank account in tally just ignore this. Read How to Create Bank Ledger

 STEP -2

Enter Journal Vouchers: For the above Transactions, you will be enter two Journal Vouchers. One Journal voucher for First Transaction and another Journal voucher for second Transaction.

Transaction No: 1
Dr. C&F Charges. Rs.100,000.
Cr. Indian Shipping Services Pvt Ltd., 98,000.
Cr. TDS on C&F Charges. Rs.2,000.

Gateway of Tally -> Accounting Vouchers -> Click on  F7: Journal from right side panel / Press F7.
> Press F2, Enter Date: 01.05.2013
> In Debit field select C&F charges from the List of Ledger Accounts.
> Enter total Expenditure (Rs.100,000) in the Amount field. Now you can view TDS Nature of payment Details.
> Select Payment to Sub-Contractors., Enter Assessable Value Rs.100,000/-



> In the Credit field  select " Indian Shipping services Pvt Ltd., "and press enter to view TDS Details screen.

> Select New Ref from the Method of Adjustment.
> * Just keep default ref Name (Eg: Jrnl/1-1),
> ** Select Payment to Sub-Contractors from the List of Nature of  Payments.
> Select TDS on C&F Charges from the list of TDS Duty Ledgers.
> Tally defaults the amount specified against the expenses ledger and skips the field.
> User can set this field to Yes or No depending on the tax deduction.
> TDS Amount field displays deducted amount & Payable Amount field displays the amount (after  TDS).
> Press Ctrl+A / Enter.

* Tally.ERP 9 displays the reference number, which is a combination of abbreviation of Journal and Voucher Number and number of references used in TDS Details (example: Jrnl / 6-1) which can be changed by the user example. TDS payments are tracked with these Reference Numbers.

 **The List of Nature of Pymt(s) displays only that Nature of Payment which is specific to the Expenses Ledgers, selected in the transaction.





> In the Bill wise details screen, Select New Ref as the Type of Ref;
> In the Name field enter the Bill name as Bill No.8.
> 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 No.8.
> 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.



> Credit " TDS on C&F Charges", Enter Rs.2000
> Write Narration.
> Press "Ctrl + A" / Enter to save the voucher.


In the same enter second Journal Voucher
Transaction No: 2
Dr. C&F Charges. Rs.80,000.
Cr. B.M.Shipping Services Ltd., 78,400
Cr. TDS on C&F Charges. Rs.1,600
 

   STEP - 3

Enter Payment Vouchers: For the above Transactions, you will be enter only one payment Voucher. As per the TDS rules, issue one cheque for one TDS section. In this TUTORIAL, there is only one TDS section transaction (i.e. 194C Payment to sub-contractors). So you will issue only one cheque for these two Transactions.

Gateway of Tally > Accounting Vouchers > F5: Payment
> Press F2 to change the date.(Enter 03.06.2013)
> Click on F12: Configure button from the Buttom of Right side panel
> In the Payment Configuration screen  Use Single Entry mode for Pymt/Rcpt/Contra option is set to Yes,
> Press Ctrl+A 



> Click on S:Stat Payment button from the Right side panel
> Now Tally displays Statutory Payment screen. Select Types of Duty/Tax as "TDS"
> 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.



Deducted Till Date: In this field user may enter, till date of the period for which the TDS values should be computed and auto-filled. Enter 31.05.2013.
> Section:  Select Section 194C Contractors & Sub-Contractors from the list of section.
As per the Act, separate TDS challans to be submitted for the payment of tax under each section. In this field, Tally.ERP 9 displays all the Sections under which, Tax deducted is pending for payment.
> Nature of Payments: Based on the section selected in the Section field, Tally.ERP 9 displays the section related nature of payments under which, Tax deducted is pending for payment.Select Payment to Sub-Contractors.
> Select Deductee Status  as Company.





> Select your Bank (Eg: ICICI Bank) from the List of Ledger Accounts.
> Enter
> The Bank Name through which the payment is made and TDS payable amount (with the respective bill details) will be auto-filled.
> Set the option Provide Details to Yes to enter TDS payment details. Now tally displays Payment Details Screen.
> From Date: In this field enter the From date of the period for which the tax is paid. Specify the appropriate Quarter period.
> To Date: In this field enter the To date of the period for which the tax is paid. Specify the appropriate Quarter period.
> fill Chque No,& Date.
> Select Name of Bank as: ICICI Bank Ltd.,
Automatically Tally displays Bank Account No, Branch Name & BRS Code. Because you have already update your bank account, when you create Bank account.
Note: If the TDS payment challan details are not available at the time of recording the TDS payment entry, such details can be either by reconciling the TDS ledger or by altering the payment voucher.
> Enter
> Write Narration, then press Ctrl+A.




Print TDS Challan No.281: Tally automatically generate TDS challan for the above payment. Just Print this challan and submit it into your bank with related cheque.

Gateway of Tally > Display > Daybook
> Press F2: Enter the payment Date (03.06.2013), then press Enter.
> From the list select, TDS on C&F Charges, press Enter.
> Press Alt+P or Click on  P: Print option on Top Left
> Tally displays Voucher Printing screen. (You can change any options in this screen, Like: Printer name, Preview option, No of Copies Etc.,)
> Press Ctrl+A



 Now Tally displays TDS Challan, Just verify all information, then click on Print.


G.S.VASU

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