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New TDS Receivable

Let's see how the TDS Receivable are accounted.
 
Let's take an eg that Anish has to receive professional fees of Rs. 50000/- (for installation charges )from santhosh towards for which anish is getting by cheque.
 
For Professional fees the TDS is 10% service tax is 10.3%.
 
Firstly, go to accounting and click on Invoice and again click on New Sales invoice.

The below screen appears.
 
 
Select the customer,update the invoice number (6256464) and select the service under product tab. Update the amount the tax as service tax 10.3% and click on calculate tax and then click on "Approve".
 
Now, we have created an invoice for the amount to be received.When anish receives the payment, the amount he receives will be the amount after deducting TDS.

To create an entry for receipt of payment, go to accounting -> click on Payment and then on "New Receipt". The following screen appear.
 

Here, select the customer ,update the amount for which the cheque is received and the reference number. i.e the invoice number. Click on "Create". (The amount will be Rs.55150- 5515(tds)=Rs.49635 )
 
But TDS is to be received for installation charges, so we need to create a TDS receivable entry. To create go to Accounting-> Click on TDS and then "New TDS Receivable". The following screen appears.
 
 
Select the customer "Santhosh", update the reference number. You will get a list of invoices raised under the customer "Santhosh". Select the invoice and update the percentage tab as 10 and click on approve. Now the TDS Receivable entry is created.  When anish receive the TDS certificate , he will check the box, TDS Received completely.
 
To verify the account, Go to Reports-> Financial Reports ->LedgerReport. Type the Ledger account "Santhosh". You will find that the account is closed. 
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