Deducting TDS on Expenses with Inventory

Step 1

Company Create

Inventory: Yes

Bill-by-bill: Yes

GST: No

TDS: Yes

Activate TDS for Stock item: YES

Step 2

GoT> Statutory Masters> TDS Nature of Payments

Name: Payment to contarctor

^I

Section: 194C

Code: 94C

Rate For Individuals/ HUF (With PAN): 2%

Rate For other deductee types (With PAN): 2%

With out PAN Card : 20%

Step 3

Create> Stock item

Stock item : Utensil

Unit: Pcs

TSD Details: YES

Nature: Payment to contractor

F12> Set Details TDS: YES

Step 4

Ledger> Create

1. Purchase A/c

Under: Purchase Account

TDS: Applicable

Nature: Payment to contractor

2. Mr. SC A/c

Under: Sundry Creditors

Bill-by-bill: Yes

Is TDS Deductable : Yes

Deductee Type: Co.Resident

Deduct TDS in Same Voucher

PAN: JDSCA1234M

3. TDS on Payment to contractor A/c

Under: Duties & taxes

TDS Applicable: Applicable

Nature Of Payment : Payment to contractor

Step 5

F9 Purchase

Party Name: Mr.SC A/c

Purchase A/c

Item: Utensil 2000 Pcs@ 100.00= 2, 00,000.00

TDS on Payment to Contractors A/c(-) 4000.00

Step 6

TDS Reports