TDS Manual 2007 B

User Manual

SAP B1 – TDS Add-On

For:SAP India

Version: 4.9 (SBO 2007)

Date: 29rd, Dec 2008

Table of Contents

INTRODUCTION............................................................................................................................. 1

1 INTRODUCTION AND JUSTIFICATION...........................................................................................21.1 Introduction.................................................................................................................. 21.2 Justification..................................................................................................................21.3 Who will deduct Tax.....................................................................................................21.4 Observance of income arise / accrual, whichever is earlier.........................................2

SETUP............................................................................................................................................ 3

2 SETUP................................................................................................................................... 42.1 Company Details..........................................................................................................42.2 TDS Setup.................................................................................................................... 52.3 Define TDS Financial Year............................................................................................52.4 State Master..................................................................................................................62.5 Chart of Accounts........................................................................................................62.6 Define Certificate Series...............................................................................................72.7 Define Sections............................................................................................................82.8 Define Assessee Type..................................................................................................82.9 Define Category............................................................................................................92.10 Define TDS Master......................................................................................................102.11 Define TDS Concession.............................................................................................122.12 Business Partner Setup.............................................................................................132.13 Business Partner tax Information..............................................................................142.14 Business Partner WT Code Allowed..........................................................................152.15 Item Master Data.........................................................................................................172.16 TDS Payment Accounts (Sales Tax paid account).....................................................17

TRANSACTIONS.......................................................................................................................... 19

3 TRANSACTIONS.....................................................................................................................203.1 Overview.....................................................................................................................203.2 A/P Invoices................................................................................................................213.3 A/P Credit Memo.........................................................................................................263.4 Outgoing Advance Payments....................................................................................283.5 A/P Down Payment Request......................................................................................333.6 Payment on Account..................................................................................................373.7 TDS Adjustment Entry................................................................................................393.8 Payment of TDS Amount to Government...................................................................413.9 Update Challan Details...............................................................................................423.10 TDS Certificate Number Generation...........................................................................433.11 TDS Certificate – Form 16A........................................................................................433.12 Incoming Payments......................................................................................................45

Introduction

1 Introduction and Justification

1.1 Introduction

Tax deducted at source is one of the modes of indirect collection of Income Tax from the assessees. Such collection of tax is effected at the source when income arises or accrues. Hence where any specified type of income arises or accrues to any party, the Income-Tax Act enjoins on the payer of such income to deduct a stipulated percentage of such income by way of Income tax and pay only the balance amount to the recipient of such income.

The tax so deducted at source by the payer has to be deposited in the Government treasury to the credit of Central Govt. within the specified time. The tax so deducted from the income of the recipient is deemed to be payment of Income tax by the recipient at the time of his assessment.

Income from several sources is subject to tax deduction at source. Some of such income subjected to TDS are rent, fees for professional or technical services, commission, brokerage, salary, interest, dividend, interest on securities, winnings from lottery, horse races etc

1.2 Justification

Section 4(2) of the Indian Income Tax Act 1961, specifies that income will be chargeable to tax at source or should be paid in advance where it is so deductible or payable under any provisions of the Act at the rates applicable for the relevant year.

Chapter XVII of the Indian Income Tax Act 1961 covers the entire scope and method of deduction at source. The payments, which are supposed to be taxed, are specified across sections from section 192 to section 206.

1.3 Who will deduct Tax

Section 204 of the Income Tax Act specifies as to who is responsible for deducting Tax. For example in case of Professional Service, the organization taking the services is the taxing authority, when making the payment or creating the Invoice, whichever is earlier.

1.4 Observance of income arise / accrual, whichever is earlier

The Income Tax Act has clearly specified in all the relevant sections that tax deduction has to happen on crediting a person’s account or on payment, whichever is earlier.

2 Setup

2.1 Company Details

Navigation: Administration System Initialization Company Details Accounting Data

Enter the income tax related details in company information.

Setup

Field Name Activity / Description

P.A.N. No Enter the Permanent Account Number here. P.A.N. No is quoted in all relevant challans, tax deduction certificates, TDS returns and other notified documents.

P.A.N. Circle No. Enter the PAN Circle number.

P.A.N. Ward No. Enter the PAN Ward number.

P.A.N Assessing Officer

Enter the PAN Assessing Officer.

TAN Enter the Tax Account Number here. P.A.N. No is quoted in all relevant challans, tax deduction certificates, TDS returns and other notified documents.

TAN Circle No. Enter the TAN Circle number.

TAN Ward No. Enter the TAN Ward number.

TAN Assessing Officer Enter the TAN Assessing Officer.

2.2 TDS Setup

Navigation: Administration Definitions / Setup Financials TDS TDS Setup

This screen provides the information for creating challan details and Form 16A i.e. the name of the person responsible for deducting tax.


Person Responsible for deducting Tax

Enter name of the person defined in employee master data.

Deductor Type Enter deductor type as Company or Others.

2.3 Define TDS Financial Year

Navigation: Administration Definitions / Setup Financials TDS Define TDS Financial Year

Specify the Accounting Periods to be followed here. As per the Income Tax Act, 1961, the financial period to be followed is April to March.

TDS will be calculated for the financial year defined in the screen below.

If any transactions take place for the TDS financial year that is not defined then TDS will not be recorded for those transactions.


Code Enter unique code for the TDS financial year. As per the e-

TDS return specification it should be 8 characters and for example for financial year 2005-06 code should be given 20052006.

Description Enter description for the TDS financial year here.

From Date Enter the starting date for the TDS financial year here.

ToDate Enter the ending date for the TDS financial year here.

Assessment Enter the assessment year. As per the e-TDS return specification it should be 8 characters and for example for assessment year 2006-07 code should be given 20062007.

2.4 State Master

Navigation: Navigation: Business Partner Business Partner Master Data Addresses Tab State Field Define New

Enter the TDS State code corresponding to each state code here. Income Tax authority has given two digit numeric codes to each state. This State Code appears in the e-TDS return.

2.5 Chart of Accounts

Navigation: Financials Chart of Accounts

Create all relevant TDS accounts in the Chart of Accounts.

2.6 Define Certificate Series

Navigation: Administration Definitions Financials TDS Define Certificate Series

Create No Series for generation of TDS Certificates.


TDS Series Code Enter unique code for the series.

Prefix Enter Prefix as it is required to appear on TDS certificate.

First No. Enter Starting No. of the Series.

Next No. This No. is updated automatically on creating a new series and also when a No. is taken out from series.

Last No. Enter Last No. for the series; this may be left blank

2.7 Define Sections

Navigation: Administration Definitions Financials TDS Define Sections

Chapter XVII of the Indian Income Tax Act 1961 covers the entire scope and method of deduction at source. The payments, which are supposed to be taxed, are specified across sections from section 192 to section 206.

Define applicable Sections here.


Section Code Enter unique code for the section like 194I, 194J

Description Enter Description for the section code.

2.8 Define Assessee Type

Navigation: Administration Definitions Financials TDS Define Assessee Type

Define various Assessee Types coming under TDS purview here.


Assessee Code Define the Assessee Code for example IND, COM, HUF

Description Enter description of the Assessee Code.

Assessee Type Choose type of the assessee for example Others or Company.

2.9 Define Category

Navigation: Administration Definitions Financials TDS Define Category

TDS Category defines the nature of transaction for which TDS would be applicable, the threshold limit for TDS deduction, surcharge threshold limit for TDS deduction, section under which TDS would be applicable, TDS Payable account for the category and the number sequence for TDS certificates.


Code Define unique code for the category like Rent, Prof

Description Enter description for the category code. This description appears on the TDS Certificate.

Section Select relevant section.

TDS Threshold Enter TDS threshold limit for each Category. TDS will be deducted only if the total transaction value with the assessee exceeds the threshold limit in the financial year.

Surcharge Threshold Enter the surcharge threshold for each TDS Category. Surcharge will be deducted only if the total transaction with assessee exceeds the surcharge threshold in the financial year.

TDS Account Select the TDS payable account from Chart o Accounts.

Certificate series Certificate Series is attached to the TDS category for the auto generation of TDS certificate number for the TDS Category. When the TDS Certificates are generated, the number is generated from the certificate series.

Calc Type Select Calc Type as “Net” if TDS is calculated on Net value of the A/P Invoice including discounts but not taxes otherwise select “Gross” for including taxes and discounts both.

Return Type Select the TDS Return in which this particular TDS category falls.

2.10 Define TDS Master

Navigation: Administration Definitions Financials TDS Define TDS Master

In TDS Master, TDS Rates are defined for a combination of “TDS Category Code”, “Assessee Code” and “Effective Date”.

Update the screen below with relevant master data


TDS Category Code Select the Nature of Deduction from the drop down list.

Assessee Code Select the Assessee Code from the drop down list.

Effective From Enter the effective date from which the TDS rate is applicable.

TDS Rate % Enter base TDS rate.

Surcharge Rate % Enter surcharge rate, which is computed on the TDS Amount.

eCess Rate % Enter education Cess rate, which is computed on the TDS

Amount inclusive of Surcharge Amount.

HeCess % Enter higher education Cess rate, which is computed on the TDS Amount inclusive of Surcharge Amount.

Every record in TDS Master Data creates two records in “Define Withholding Tax” as shown in the screen below. Note that for financial posting “TDS Add-on” make use of Withholding Tax functionality of SAP B1 after applying calculation rules for TDS.

In all the TDS transactions “WT Code” is mapped that in turn maps the TDS Category and Assessee Type and corresponding TDS Component Rates as is evident from above screen.

2.11 Define TDS Concession

Navigation: Administration Definitions Financials TDS Define TDS Concession

This screen is used to define the TDS rates at a concession rates. These rates can be applied to any vendor based on the requirement.

Update the screen below with relevant master data


TDS Category Code Select the Nature of Deduction from the drop down list.

TDS Concession Code Define the TDS Concession Code.

Description Give the description.

Effective From Enter the effective date from which the TDS concession rate is applicable.

TDS % Enter base TDS rate.

Surcharge % Enter surcharge rate, which is computed on the TDS Amount.

eCess Rate % Enter education Cess rate, which is computed on the TDSAmount inclusive of Surcharge Amount.

HeCess % Enter higher education Cess rate, which is computed on the TDS Amount inclusive of Surcharge Amount.

Every record in TDS Concession Data creates two records in “Define Withholding Tax” as shown in the screen below. Note that for financial posting “TDS Add-on” make use of Withholding Tax functionality of SAP B1 after applying calculation rules for TDS.

2.12 Business Partner Setup

Navigation: Business Partner Business Partner Master Data Accounting Tab Tax Tab

Setup TDS related information such as Income Tax information, whether a BP is liable for TDS, what categories are applicable and which one is default etc.


Tax Information Click button to open “Tax Information” screen. (Refer Section

2.9 Business Partner tax information) Income tax related information for Business Partner is defined in this screen.

Subject to Withholding Tax

Check this “Check Box” if TDS is to be calculated for this Business Partner.

WT Code Allowed Click button to open “WT Code Allowed” screen (Refer section 2.10 Business Partner WT Code Allowed) to select the applicable “TDS Categories” for the Business Partner.

TDS Overlook Check this “Check Box” if Base TDS Amount is to be calculated from very first transaction for this business partner even though the TDS threshold limit is not crossed.

Surcharge Overlook Check this “Check Box” if Surcharge Amount is to be calculated from very first transaction for this business partner even though the Surcharge threshold limit is not crossed.

Note: Currency should be “Multiple Currency” for the business partners that are subject to TDS.

2.13 Business Partner tax Information

Navigation: Business Partner Business Partner Master Data Accounting Tab Tax Tab Tax Information Button

Enter Income related information for business partner here.


P.A.N. No. Enter the Permanent Account Number here. P.A.N. No is quoted in all relevant challans, tax deduction certificates, TDS returns and other notified documents.

P.A.N. Circle No. Enter the PAN Circle number.

P.A.N Ward No. Enter the PAN Ward number.

P.A.N. Assessing Officer

Enter the PAN Assessing Officer.

2.14 Business Partner WT Code Allowed

Navigation: Business Partner Business Partner Master Data Accounting Tab Tax Tab WT Code Allowed Button

Select the TDS Categories allowed for the business partner here. More than 1 category can be selected but only 1 category can be set as default.

Select the “Set as Default” button to mark the category as Default.

Select “OK” button to close the WT Codes


Code This code is generated corresponding to a combination of “TDS Category” and “Assessee Code” defined in the “TDS Master” screen.

Description Description for the Code. A typical Description is <TDS Category> <Assessee Code>

Choose Check this box corresponding to categories applicable for the Business Partner.

Set as Default Click this button to set default category.

Note: System does not impose any restriction if user selects Codes that corresponds to multiple Assessee Codes. User needs to take care of this validation.

2.15 Item Master Data

Navigation: Inventory Item Master Data

Not all items are liable to TDS deductions. Specify whether an item is subject to TDS here


Withholding Tax Liable Check this “Check Box” if the item is subject to Withholding Tax. This “Check Box” will be set typically for the Service Items.

Note: System does not impose any restriction if user checks this box for “Inventory” item.

2.16 TDS Payment Accounts (Sales Tax paid account)

Navigation: Administration Definitions Financials G/L Accounts Determination Sales Tab Tax Tab

This is applicable in scenario where customer deducts the TDS and makes the rest of the payment. “TDS Payment Account”, to which the TDS deducted by customer is posted, is defined here.


TDS Payment A/C Enter the G/L Account to which TDS amount deducted by the customers will be posted. Note that “TDS Amount” field in “Incoming Payments” screen will be non-editable if this account is not specified.

Transactions

3 Transactions

3.1 Overview

Various business transactions scenarios, which are addressed by the TDS functionality, are mentioned below:

Direct A/P Invoices

A/P Credit Memo

Outgoing Advance Payments

1. A/P Down Payment Invoice

2. A/P Down Payment Request

3. Payment on Account

A/P Down Payment Request

TDS Adjustment

Payment of TDS Amount to Govt.

Update Challan

TDS Certificate Generation

Form – 16A

Incoming Payments

3.2 A/P Invoices

Navigation: Purchasing A/P A/P Invoice

A/p Invoice can also be created by following ways: -

A/p Invoice created by selecting the “A/p invoice” menu option under the purchase module for the “Service” Type

A/p Invoice created using the “Copy From GRPO” option of Item Type.

A/p Invoice created using the “Copy From Purchase Order” option of “Item” Type.

A/p Invoice created using the “Copy From GRPO” option of “Service” Type.

A/p Invoice created using the “Copy From Purchase Order” option of “Service” Type.

A/p Invoice created using the “Copy To” option from Purchase Order Document for the “Item” Type

A/p Invoice created using the “Copy To” option from Good Receipt Option Document for the “Item” Type.

A/p Invoice created using the “Copy To” options from Purchase Order Document for the “Service” Type.

A/p Invoice created using the “Copy To” options from Good Receipt Document for the “Service” Type.

A/p Invoice created from the Draft A/p invoice of “Service” Type

A/p Invoice created from the Draft A/p invoice of “Item” Type.

A/ P invoice created based on the Approval Procedure of “Item Type”

A/p Invoice created based on the Approval Procedure of “Service Type” just as above.

A/p Invoice created while multiple copies of the A/p invoices document is opened both (or all) from main menu.

A/p Invoices created while multiple copies of the A/p invoices document are opened from main menu.

A/p Invoices created while multiple copies of the A/p invoices document are opened from main menu and also opened simultaneously through “Copy To” options GRPO or Purchase Order.

A/p Invoices created while multiple copies of the A/p invoices document are opened from main menu and also opened simultaneously through “Copy from” options in the same document.

When an AP Invoice for a vendor is recorded, based on the TDS Setup for vendor and items, the system calculates the TDS amount and defaults it in “WT Amount” field. If the Invoice is against a down payment(s) (Advance), click on “Total Down Payment” and select the down payment(s). The system recalculates the TDS amount after netting off the down-payment. The Orange Arrow next to “WT Amount” field launches a screen, which defaults TDS details including TDS Base Amount, Surcharge Amount, eCess Amount, HeCess Amount and percentage for these components.

If the transaction is for a different Category, choose the applicable category and system recalculates TDS Amount according to the selected category.

On clicking on the “Show TDS Details” button, “TDS Table” screen launches and this screen has the details of the TDS deducted.

On clicking on “Add” button, system asks if you would want to open Withholding tax Table. Click yes if TDS was not calculated or for rounding off the TDS amount or transaction is for a different category than the default category.

Notes

If the “Calc type” for the TDS Category is NET then tax amount is NOT included in the TDS calculations.

If the Calc type for the TDS Category is GROSS then tax amount is included in the TDS Calculations.

WT Liable Additional expenses at the line and document level are included in TDS calculations.

Discount is added in both NET and GROSS Calc type.

3.3 A/P Credit Memo

Navigation: A/P Purchasing A/P Credit Memo

Any A/P Credit Memo has its base documents i.e. A/P Invoice or A/P Down Payment Invoice. We can create A/P Credit Memo either from “Copy To” or “Copy From” options as in the above screen A/P Credit Memo is being created through “Copy From” option.

A/P Credit Memo can also be created by following ways: -

A/P Credit Memo created by selecting the “A/p Credit Memo” menu option under the purchase module for the “Service” Type

A/P Credit Memo created by selecting the “A/p Credit Memo” menu option under the purchase module for the “Item” Type

A/P Credit Memo created from the Draft mode of “Service” Type

A/P Credit Memo created from the Draft mode of “Item” Type.

A/ P Credit Memo can also be created based on the Approval Procedure of “Item Type” or “Service Type” just like A/P Invoice which can be seen in A/P Invoice screen shot based on approval procedure.

A/P Credit memo is created for the purpose of reversing the transaction (i.e. Journal Entry). If TDS has been deducted more for the particular vendor then A/P Credit Memo is created for balancing the transaction.

3.4 Outgoing Advance Payments

Navigation: A/P Purchasing A/P Down Payment Invoice

A/P Down Payment Invoice can also be created by following the scenarios mentioned below just like A/P Invoice:-

A/p Down payment Invoice created by selecting the “A/p Down payment invoice” menu option under the purchase module for the “Item” Type

A/p Down payment Invoice created by selecting the “A/p invoice Down payment” menu option under the purchase module for the “Service” Type

A/p Invoice Down payment created using the “Copy From GRPO” option of Item Type.

A/p Invoice Down payment created using the “Copy From Purchase Order” option of “Item” Type.

A/p Down payment Invoice created using the “Copy From Purchase Order” option of “SERVICE” Type.

A/p Down payment Invoice created using the “Copy From GRPO” option of “Service” Type.

A/p Down payment Invoice created from the Draft mode of “Service” Type

A/p Down payment Invoice created from the Draft mode of “Item” Type.

Outgoing Advance Payment is essentially a two step process, First AP Down Payment Invoice is posted and any TDS applicable is calculated here. Then an outgoing payment is made against A/P Down Payment Invoice through Banking Outgoing payments.

At the time an invoice is recorded, any Advance payment (A/P Down Payment Invoice and corresponding Outgoing Payment) made earlier can be applied to the invoice by selecting A/P down payment invoice. System recalculates TDS by netting AP Down Payment Invoice Amount with Invoice Amount.

For example let’s create an A/P Down Payment Invoice for INR 10000 as shown in the screen below

System calculates total TDS of 1071 at the rate of 10.71%. Add the invoice and click on “Banking Outgoing Payments Outgoing Payments” and make the payment of INR 9829 against this A/P DP Invoice.

Add the payment and after adding only AP DP can be pulled in AP Invoice.

Now create an A/P invoice of INR 20000. System calculates total TDS of 2142 at the rate of 10.71% as shown in the screen below

Click on the “Total Down Payment” button and “Down Payments to Draw” screen opens showing available A/P down payments available for application against invoice.

Highlight the required A/P DP Invoice and click “Ok” button. TDS gets recalculated on differential amount of Invoice Value and A/P down payment invoice value that is INR 20000 – INR 10000 = INR 10000 as shown in the screen below

Click Add button to add the Invoice.

3.5 A/P Down Payment Request

Navigation: - Purchasing A/P A/P Down Payment Request

A/P Down Payment Request document can be created by following the scenarios mentioned below just as in A/P Invoice and A/P Down payment Invoice:-

A/p Down payment Request Invoice created by selecting the “A/p Down payment Request invoice” menu option under the purchase module for the “Item” Type

A/p Invoice Down payment Request created using the “Copy From GRPO” option of Item Type.

A/p Invoice Down payment Request created using the “Copy From Purchase Order” option of “Item” Type.

A/p Down payment Request created using the “Copy From Purchase Order” option of “SERVICE” Type.

A/p Down payment Request created using the “Copy From GRPO” option of “Service” Type.

A/p Down payment Request created from the Draft mode of “Service” Type

A/p Down payment Request created from the Draft mode of “Item” Type.

System also calculates the TDS while adding an A/P Down Payment Request. As you can see above TDS is calculated of Rs. 6660 based on the percentage defined there in TDS Category Master and is the total of TDS amount, surcharge amount, eCess amount and HeCess amount (Higher Education Cess - a new concept imposed by the government recently in the year 2007).

The Golden Arrow next to “WT Amount” field launches a screen, which shows the TDS details including TDS Base Amount, Surcharge Amount, eCess and HeCess Amount and percentage.

If the transaction is for a different Category, choose the applicable category and system recalculates TDS Amount according to the selected category.

On clicking on the “Show TDS Details” button, “TDS Table” screen launches and this screen has the details of the TDS deducted.

On clicking on “Add” button, system asks if you would want to open Withholding tax Table. Click yes if TDS was not calculated or transaction is for a different category than the default category.

Notes

If the “Calc type” for the TDS Category is NET then tax amount is NOT included in the TDS calculations.

If the Calc type for the TDS Category is GROSS then tax amount is included in the TDS Calculations.

WT Liable Additional expenses at the line and document level are included in TDS calculations.

Discount is added in both NET and GROSS Calc type.

TDS Entry can only be posted after doing outgoing payment for that particular vendor for whom you create an A/P Down Payment Request. You can navigate to Outgoing Payments by choosing Banking Outgoing Payments Outgoing Payments and make the payment of INR 193340 against this A/P DP Request. And rests of the steps are same like in A/P Invoice.

3.6 Payment on Account

Navigation: - Banking Outgoing Payment

TDS on advance payment can be deducted through outgoing payment based on “Payment on Account” selection.

Points to remember:-

Vendor (Subject to Withholding Tax) should be selected.

WTCode of “P” type should be chosen.

“Payment on Account” check box should be checked.

WTax amount can be rounded off while doing the outgoing payment to the Vendor based on “Payment on Account” selection.

Clicking the “Show TDS Details” button will launch a screen, which shows the TDS details including TDS Base Amount, Surcharge Amount, eCess and HeCess Amount and percentage as shown in the screen below:

3.7 TDS Adjustment Entry

Navigation: Financials TDS TDS Adjustment Entry

In case TDS is deducted erroneously, it can be corrected through “TDS Adjustment Entry”.


Transaction Type Select the Transaction Type for which adjustment is to be done.

Transaction No Enter the transaction no for which TDS adjustment is to be done.

TDS Base This is “TDS Base Amount” of the original entry. (non-editable)

TDS % This is “TDS %” of the original entry. (non-editable)

Surcharge Base This is “Surcharge Base Amount” of the original entry. (non-editable)

Surcharge % This is “Surcharge %” of the original entry. (non-editable)

New TDS% Enter the new “TDS %” here.

New Surcharge % Enter the new “Surcharge %” here

New TDS On entering “New TDS %” and “New Surcharge %” system has calculated new TDS and shown in this field. On update system creates a new journal entry for the differential amount of “New TDS” and “Total TDS”. In this example 3927 – 3141.60 = 785.40.

Document Series Select the Document Series for which adjustment is to be done.

On click of Update, journal entry is posted debiting vendor and crediting “TDS payable Account” of original TDS entry for the differential amount of Original TDS amount and New TDS Amount as shown in the screen below

TDS Entry also gets modified after the update.

3.8 Payment of TDS Amount to Government

Navigation: Banking Outgoing Payments Outgoing Payments

Select option Account and G/L Account in which TDS Liability has been posted. To select the transactions for which TDS is to be paid to Govt. click on the button “Pick TDS Entries”. Following screen will load where entries against which TDS is being paid to the Govt. can be selected. A click on “Choose All” will select all entries in the screen and “Clear All” will clear any selection made.

Choose the entries for which TDS is to be paid and click Add. The total sum of all the selected entries will be filled in Amount Field in Outgoing Payment Screen and Amount field becomes non-editable. Open the Payment Means screen and select the payment means and click Add. Data can also be sorted based on the Category type and Assessee Type drop down.

3.9 Update Challan Details

Navigation: Financials TDS Update Challan Details

TDS Update is a register to be maintained to keep track of all the TDS payments made to the government with relevant challan details. TDS challan is made to government Section wise. The challan number, challan date and bank name is updated using this functionality which has to be updated for each transaction to be printed on TDS certificate.

Select the Section Code and all entries for that section will appear in the grid. Select the entries for which the Challan Details will be updated. Click on Add Button. This will load another screen to enter relevant challan as shown in the screen below

Enter Bank Serial No., Challan No, Challan Date and Bank Name and cheque number. This information is mandatory as it appear on the TDS Certificates and Returns.

3.10 TDS Certificate Number Generation

Navigation: Financials TDS TDS Certificate No Generation

TDS Certificate Number Generation is used to generate the certificate number for the certificates to be issued to the Business Partner for the TDS deducted and paid on transaction of various TDS Categories.

Enter the Business Partner, TDS Category and date range for which TDS certificate is to be generated. Click on Update and TDS Certificate will be generated from the No. Series attached to the TDS Category in “TDS Category Master”.

3.11 TDS Certificate – Form 16A

Navigation: Financials TDS Form 16A

Enter Business partner, TDS Category, Date Range for which TDS Certificate to be generated. System shows the TDS Certificate as below:

Currently there is no check on duplicate printing.

3.1 TDS Certificate – Form 27A

Navigation: Financials TDS Form 27A

Enter Financial Year, Quarter, Place and Designation (if not given in “Employee Master Data”) for which TDS Certificate to be generated. System shows the TDS Certificate as below:

3.2 Incoming Payments

Navigation: Banking Incoming Payments Incoming payments

While receiving incoming payments, if customer has deducted TDS Amount, enter the amount in “TDS Amount” field. System posts a journal entry for “TDS Amount” by debiting the

“TDS Payment Account” and crediting the customer when incoming payment is added by clicking Add button. However this amount is not reconciled against any Invoice even if payment is received against invoices. A manual reconciliation through Banking Reconciliations is required to reconcile journal entry and invoice for which TDS was deducted by the customer.

On addition of this incoming payment following Journal Entry is posted.

After addition of the Journal Entry, a balance of INR 150 is still pending against the invoice as is evident from Customer Aging Report as shown in following screen

Balance against Invoice and journal entry can be reconciled by clicking on “Banking Bank Statements and Reconciliations Reconciliations” as and select the parameters as shown in following screen

Click on reconcile and following screen will load

Select the entries to be reconciled and click on Reconcile button. After this reconciliation following is the Customer Aging Report where above reconciled entries do not exist

Currently TDS has not been implemented on “Payment on Account” on Incoming Payment.

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TDS Manual 2007 B

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