EWT: TDS Overview
EWT: TDS (Tax Deducted at Source)
EWT: Vendor Transactions:
EWT: Customer Interest TDS:
EWT: Provisions and Adjustments:
EWT: TDS (Tax Deducted at Source)
- Tax is deducted at source from all payments/provisions which are hit by the TDS provisions of the Act
- Some of the above payments/provisions pertain to services that come within the scope of Tax Deducted at Source (‘TDS’) under the Indian Income-tax Act, 1961 (‘Act’).
- Tax is not deducted from payment for goods
- TDS is required to be deducted at the time of payment or invoice posting whichever is earlier.
- The taxes which are so deducted, will then have to be deposited to the credit of the Indian Government on or before 7th of next every month.
- The company will have to issue TDS certificates to the vendors for the tax deducted and also file with the tax office, Quarterly & Annual Return‘ of the total taxes deducted during the year under the various sections of the Act.
EWT: Vendor Transactions:
EWT: Customer Interest TDS:
EWT: Provisions and Adjustments:
- TDS computed on entries in provisional liability accounts (GR/IR and SR/IR Accounts)
- TDS is computed at each period end on uncleared entries remaining in the GR/IR and SR/IR accounts
- GR/IR and SR/IR accounts relevant for computing TDS on provisions identified separately
- GL accounts to which the provisional TDS is posted identified and document Type used for provisional TDS postings is separately identified
- JV facility available for carrying out changes to TDS relevant postings
- Accounts to which losses (non-recoverable TDS) is to be posted and the document type to be used for TDS adjustment postings is identified separately.
