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New TDS Payable

Let's take an example that the company has to pay commission /Brokerage of Rs.1000/= to Maheshkumar. The TDS Section for commission or brokerage is 10% and the section is 194H. The TDS amount that needs to be deducted is Rs.100/=.

Once the sections are created, we can now make an entry for TDS. To do this, click on “New TDS Payable”.  The following screen appears.

Here select the supplier, update the date, select the recipient type company or non-company (i.e. if the service is rendered by a company then select company or if the service is rendered by an individual then select Non-Company).Select the section from the drop downlist based on the expense. Here let's select 194H (refer the link http://www.itaxindia.org/2011/08/tds-rates-11-12-tds-rate-chart-cut-off.html  for the section and provide any comments if needed , update the amount, provide reference no or the invoice number against which the tds entry is made and then click on “Approve”.

Once we click on “Approve”, the following screen appears with the prompt “TDS Payable created successfully” and also “Waiting to be used”.
Waiting to be used means that this amount is not yet offset against any purchase invoice.