TDS ON GOODS
As Per the new Section 194Q introduced in Budget 2021-2022 and applicable from 1st July 2021, buyers now have to deduct TDS on purchase of goods.
Who should deduct TDS under section 194Q
A buyer whose annual turnover in last financial year is more than 10 crores
Nature of transactions which comes under section 194Q
TDS to be deducted on purchase of goods more than 50 lakhs from a single seller in the same financial year.
Rate of TDS
If seller has PAN number then TDS will be applicable at the rate of 0.1% otherwise it will be at the rate of 5%
Applicability of TCS if TDS is deducted
If buyer is liable to deduct TDS on purchase then seller shall not collect TCS on the bill
This tutorial will guide you to the process of entering TDS details and its calculations at the time of entering purchase in Logic ERP.
Setting & Allocating TDS Type
Step-1: Go to the Setup TDS Type window to create a new TDS Type as shown in the picture below. Fill all the details and define the amount after which TDS will be in effect.
Step-2: Now go to Allocate Accounts to TDS Types window. There are two modes: Batch Entry & Edit Entry.
Allocate the Account name to the TDS Type name as shown in the picture below:
How does it work in Purchase Voucher?
Step-1: Go to the Purchase Voucher window -> Select the Account name for which you have defined the TDS Type as shown in the steps above. Then click on Item details to generate the bill.
Step-2: After filling items, click on the TDS Details button. You will see the TDS amount that’s applied to the bill.
For example, in this case, the maximum TDS Effective after Transaction Amount was defined as Rs. 50,00,000 in the Setup TDS Type window. Now here, the billing amount exceeds Rs. 50,00,000 i.e. Rs.56,10,000. So here, the TDS amount has been applied on Rs. 6,10,000 that got accumulated in the bill after exceeding Rs. 50 lakh amount that was defined in the Setup TDS Type window.
The TDS on Goods A/C will get displayed in the report as shown in the picture below: