In case of Advances, payment (to the party) is made after deducting the applicable TDS.
Example: ABC Company made an advance payment of Rs.10,000 to Pheonix Agencies towards Advertisement Expenses, which will be adjusted against the bill of Rs.20000. TDS is deducted while making the payment.
Go to Gateway of Tally > Accounts Info. > Ledgers > Create
Enter Canara Bank as the Ledger Name
Group it under Bank Accounts group
Under Mailing Details
In Address field enter the Bank Branch Address.
Select Karnataka in State field
Enter the PIN code
In A/c No. field enter the Account Number as 00758978
In Branch Name field, enter M.G.Road.
Enter the Bank’s BSR Code as 0240130. BSR Code is a 7 digit Number allotted by Reserve Bank of India (RBI) to Bank Branch.
Enter Rs. 50,00,000 in Opening Balance field
Press Enter to Accept and save.
To create a Payment Voucher
Go to Gateway of Tally > Accounting Vouchers > F5: Payment.
Set up
In F12: configure (Payment Configuration)
Ensure Use Single Entry mode for Pymt/Rcpt/Contra is set to Yes
Press F2 and change the date to 24-04-2009.
In Account field select Canara Bank.
Under Particulars select Pheonix Agencies.
Enter Rs.10,000 in the Amount field.
In Bill-wise Details screen:
In Type of Ref field select Advance from method of Adj
Enter the Bill Name (Adv-001) in the Name field
Skip the Due Date, or Credit Days field.
Amount is defaulted to Rs. 10000.
Under Particulars select the Duty Ledger TDS – Contractors from the List of Ledger Accounts
In TDS Details screen
In Type of Ref field select New Ref
In Name field accept the default Reference Number –Pymt / 1-1
In Nature of Payment field select Payment to Contractors (Advertisement Contractors)
TDS Duty Ledger, Assessable Amount and TDS Amount field details are defaulted automatically, based on the information provided in the voucher.
In the Amount field the TDS amount (Rs. 100) is displayed with negative sign.
Enter Narration, if required.
Press Enter to accept and save.
Note: Advance payments can also be accounted in Double Entry mode.