on 08-27-2014 6:59 AM
Dear All,
The customer of my clients used to deduct TDS @ 2% at the time of Fund receipt. to my client.
The entry in Tally is
TDS a/c Dr 10000
Bank a/c Dr 490000
To Customer a/c Cr 500000.
1. My doubt is how to make this entry in SAP. Should I follow Withholding Tax for Customer (Like Vendor) or I create manual GL for TDS a/c.
2. The customer of my client used to deduct TDS with Under sec 194C @ 2%. So what official withholding tax key should I use for TDS config for customers . Is it 194C or any thing other?
Please guide.
Regards
Soumya.
HI Soumya,
Yes, it is covered under sec.194C. Same TDS procedure applicable for both vendors & Customers. But ensure that at the time of assignment of withhold tax type to co.code, you have to select sub.to w/x check box which is in the customer data and also assign w/h codes in customer master data.
Regards,
Mukthar Ali
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Dear Mukhtar,
Please let me know on following points. Here we used to deduct TDS on both vendor and customer. Now when we deduct TDS on vendor side it is showing under "current liability" . Now my question is , should I create a different TDS GL for TDS being deducted on customer site. or I will use the same GL as per vendor.
What is the best practice ? Please guide.
Hi Mukhtar,
Thanks for your reply. This TDS receivable will be created on current asset side. Yes or No ?
2. The entry in Tally is like this.
In Bank A/c Dr 4,80000
TDS Receivable 20000 Cr
Customer a/c 500000 Cr.
Now for automatic deduction of this TDS receivable I have to define separate with tax and code and assign new GL.
now also in customer master , I have to update CIN details. Because without this the system will not allow to deduct tax.
Now the client is having the TAN No. of the customer . Will that be sufficient or I need PAN no. too. What is necessary ?
Please guide.
Regards
Soumya
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