Accounting Multiple Expenses and Deducting TDS Later

 

The TDS transaction in a purchase voucher can be entered for multiple expenses (in the same voucher) and deduct TDS later.

Example: ABC Company received a bill (No.962) from phoenix agencies towards

Commission Charges - Rs. 20,000

Advertising Expenses - Rs. 10,000

 

Step 1: Create Expense Ledger

Go to Gateway of Tally > Accounts Info. > Ledgers > Create

Step 2: Create Tax Ledger

Go to Gateway of Tally > Accounts Info. > Ledgers > Create

Step 3: Create Purchase Voucher

To create Purchase Voucher

Go to Gateway of Tally > Accounting Vouchers > F9: Purchase

  1. Press Alt + I for Account Invoice mode

  2. Press F2 and change the date to 20-04-2009

  3. In Party’s A/c Name field select Phoenix Agencies from the List of Ledger Accounts

  4. Under Particulars select Commission Charges

  5. Enter Rs. 20,000 in the Amount field

  6. In the TDS Nature of Payment Details screen, accept the default details.

  7. Under Particulars select Advertisement Expenses

  8. Enter Rs. 10,000 in the Amount field

  9. In the TDS Nature of Payment Details screen, accept the default details.

  10. In the TDS Details screen.

  11. Select New Ref in the Type of Ref field

  12. In Name field accept the default Bill reference i.e., Purc / 3-1

  13. In Nature of Payment field, select Commission Or Brokerage

  14. In TDS Duty ledger field select TDS – Commission Or Brokerage

  15. Assessable Amount will be defaulted Rs. 20,000

  16. Select New Ref in the Type of Ref field

  17. In Name field accept the default Bill reference i.e., Purc / 3-2

  18. In Nature of Payment field, select Payment to Contractors (Advertisement Contractors)

 

  1. In Bill-wise Details screen

  2. In Type of Ref field select New Ref

  3. In the Name field enter the bill name as Bill-962

  4. Skip the Due Date, or Credit Days field

  5. 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

  1. Enter Narration, if required.

  1. Press Enter to accept and save.

 

Step 4: Create a Journal Voucher

Here we illustrate the Cumulative deduction of Tax on multiple expenses, accounted in same invoice.

To create Journal Voucher

Go to Gateway of Tally > Accounting Vouchers > press F7: Journal

  1. Press F2 and change the date to 22-04-2009

  2. Press Alt +S or click on S: TDS Deduction button on the buttons bar to view TDS Deductions screen.

  3. In TDS Deductions screen

  4. Enter 22-Apr-2009 in Till Date field.

  5. In Party field select Pheonix Agencies from the List of Ledger(s)

  6. In Nature of Payment field select All Items from the List of Nature of Pymt(s)

Note: Based on the Party selected in the Party field, Tally.ERP 9 displays all the party related nature of payments under which TDS deduction is pending. User can select all the Nature of Payments (All Items) or any one of the Nature of payment from the list, for TDS Deduction.         

  1. Accept the TDS Deductions to auto-fill the TDS amount with the respective bill details.

 

 

 

Note: Total TDS of Rs.2,163 includes TDS – Contractors Rs. 103 and TDS – Commission Or Brokerage Rs. 2,060 against Purc / 3-2 and Purc / 3-1 respectively.

  1. In the Bill-wise Details screen details

  2. In Type of Ref field select Agst Ref

  3. In Name field select Bill-962

  4. In Amount field enter the Total TDS amount of Rs. 2100

  1. Enter Narration, if required.

  1.  Press Enter to accept and save.