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https://help.tallysolutions.com/docs/te9rel60/Tax_India/TDS/account_expense_deduct_tds_later.htm

Accounting for Expenses, Deducting TDS Later

It is always expected that the deductor should deduct the tax in the same invoice in which the expenses are accounted. But in some cases, deductor may follow the procedure of accounting only expenses on the receipt of bills and later, deduct applicable tax on all such accounted expenses in one invoice.

Scenario: On 1-4-2015, ABC Company paid MAR Tech Park ₹ 5,00,000 as rent (accounting only expenses). On 14-4-2015, deducting applicable tax.

Accounting for Expenses

To create a journal voucher

1.    Go to Gateway of Tally > Accounting Voucher > F7: Journal.

2.    Click F2: Date to change the date to 1-4-2015.

3.    Debit the Rent expense ledger.

4.    Enter 500000 in the amount field.

5.    Credit MAR Tech Park.

6.    Enter 500000 in the amount field.

7.    Press Enter.

8.    Enter Narration, if required. The Journal voucher appears as shown below:

9.    Press Ctrl+A to save the voucher.

Deducting Applicable TDS

To create a journal voucher

1.    Go to Gateway of Tally > Accounting Voucher > F7: Journal.

2.    Click F2: Date to change the date to 14-4-2015.

3.    Debit MAR Tech Park.

4.    Enter 100000 in the amount field.

5.    Enter the required details in the Bill-wise Details screen.

6.    Press Enter.

7.    Credit TDS on Rent ledger.

8.    Enter 100000 in the amount field.

9.    Enter the required details in the TDS Details screen.

10.  Press Enter.

11.  Enter Narration, if required. The Journal voucher appears as shown below:

12.  Press Ctrl+A to save the voucher.