Example: On 5-8-2009 ABC Company received the bill for Rs. 50000 (for the supply of 1000 cartons @ 50 per carton) from AK Enterprises. Cartons are printed with the company logo and other information as required on which TDS is applicable.
The above transaction is recorded in a Journal Voucher
Go to Gateway of Tally > Inventory Info. > Stock Item > Create
In the Name field enter the Stock Item Name e.g. Cartons
In the Under field select Primary group
In the Unit field select Nos
In the Rate of VAT (%) field enter 4%
Press Enter to save
Go to Gateway of Tally > Accounts Info. > Ledgers > Create
In the Name field enter the Ledger Name e.g. AK Enterprises
In the Under field select Sundry Creditors group
Set Maintain balances bill-by-bill to Yes
Enter the Default Credit Period if any
Set Is TDS Deductable to Yes
In Deductee Type field select Company-Resident
Enter the Mailing Details and Tax Information
Press Enter to save
Go to Gateway of Tally > Accounts Info. > Ledgers > Create
In the Name field enter the Ledger Name e.g. Packing Expenses
In the Under field select Indirect Expenses group
Set Inventory values are affected to Yes
Set Use for Assessable Value Calculation to No
Set Is TDS Deductable to Yes
In the Default Nature of Payment field select Payment to Contractors (Other Than Advertisement)
Press Enter to save
In the Name field enter the Ledger Name e.g. TDS – Contractor Other Than Adv.
In the Under field select Duties & Taxes group
In the Type of Duty/Tax field select TDS
In the Nature of Payment field select Payments to contractors (Other Than Advertisement)
Press Enter to save
Go to Gateway of Tally > Accounting Vouchers > Press F7: Journal
Press F2 and change the date to 05-08-2009
In the Debit field select Packing Expenses ledger from the List of Ledger Accounts and press enter to view Inventory Allocation screen
In the Inventory Allocation Screen
In the Name of Item field select Cartons
In the Quantity field enter 1000
Enter Rs. 50 in the Rate column and the Amount is displayed automatically
In TDS Nature of Payment Details screen accept the default details.
In the Credit field select AK Enterprises and press enter to view TDS Details screen
In the TDS Details screen
In the Type of Ref field select New Ref
In the Name field Jrnl / 13-1 is displayed automatically
In the Nature of Payment field select Payment to Contractors ( Other Than Advertisement)
In the TDS Duty Ledger field select TDS- Contractor Other Than Adv.
Set the Deduct Now field to Yes
TDS Amount field displays the Tax amount Deducted at Source
Payable Amount field displays the amount (after TDS) payable to the party
Press Enter to accept the TDS Details.
Payable Amount as calculated in the TDS Details screen will be defaulted in the Party’s Amount (Credit) field.
In Bill-wise Details screen
Select New Ref as the Type of Ref
In the Name field enter the Bill name as Bill -099
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 -099
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.
In the Credit field select TDS- Contractor Other Than Adv. from the List of Ledger Accounts.
In the Amount field, Rs. 1000 [Bill amount (50,000) – Pending Amount (49,000)] is displayed automatically.
Enter Narration, if required.
Press Enter to save.
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