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