Account for TDS or TCS on Purchases Under GST in TallyPrime
Record a purchase voucher with GST for the complete transaction, and then deduct TDS in the journal voucher. Make the payment for the balance amount. Transactions with TDS or TCS on purchases under GST will not appear in GST returns.
Consider a scenario where Ajay Developers records the sale of works contract to KM Council of India, worth Rs. 1,00,000. The transaction attracts 18% GST.
- Sales voucher
- Purchase voucher
- Journal voucher
- Payment voucher
- Receipt by accounting for TDS deduction
To record a sales voucher in the books of Ajay Developers
Debit: KM Council of India 1,18,000
Credit: Sale of works contract 1,00,000
Credit: CGST @ 9% 9,000
Credit: SGST @ 9% 9,000
———————————————————————————————————————–
1,18,000.00 1,18,000.00
To record a purchase voucher in the books of KM Council of India
Debit: Purchases of works contract 1,00,000
Debit: CGST @ 9% 9,000
Debit: SGST @ 9% 9,000
Credit: Ajay Developers 1,18,000
————————————————————————————————————————-
1,18,000.00 1,18,000.00
KM Council of India will deduct TDS and then make the payment to Ajay Developers.
To record a journal voucher for TDS deduction in the books of KM Council of India
Debit: Ajay Developers 2,000
Credit: TDS – CGST @ 1% 1,000
Credit: TDS – SGST @ 1% 1,000
—————————————————————————————————————————-
2,000.00 2,000.00
To record a payment voucher for TDS deduction in the books of KM Council of India
Debit: Ajay Developers 1,16,000
Credit: Bank/Cash 1,16,000
——————————————————————————————————————————
1,16,000.00 1,16,000.00
Ajay Developers will record a receipt voucher and account for TDS deduction.
To record a receipt voucher in the books of Ajay Developers
Debit: Cash/Bank 1,16,000
Credit: KM Council of India 1,16,000
——————————————————————————————————————————-
1,16,000.00 1,16,000.00
To record TDS on CGST and SGST in the books of Ajay Developers
Debit: TDS – CGST 1,000
Debit: TDS – SGST 1,000
Credit: KM Council of India 2,000
———————————————————————————————————————————–
2,000.00 2,000.00
Use the same process to record transactions of TCS with GST.
