30 May 2012
The following entry is passed in SAP at the time of GR for goods received from sub contractor after processing:-
Rev Exp head A/C.................Dr. To, GR/Ir A/C.
and at the time of Pricing:-
GR/Ir A/C.................Dr. To, Vendor A/C To, TDS payable A/C.
You all are requested to kindly help should Tax be deducted at the time of GR or Pricing? and IF Tax deducted at the time of GR then how tax deducted at gr earlier be claimed if material is rejected?
31 May 2012
first, tds is not applicable in the case of goods received , tds depends upon the intangibel services rendered. but if it is the case of service rendering then tds will be applicable when it is credited in your account i.e. pricing, pls check the invoice whether local sales tax levied or not.
01 June 2012
Agree with Mr. Shaw,First TDS is not applicable on goods purchased or sales (in normal case) as you mentioned above same procedure do followed by SAP while service entries so your question that regards is right. Dear Friend TDS is applicable " Payment or credit whichever is earlier" as you mentioned above in second entry you are crediting vendor's account which is point of TDS and your TDS become due only on that spot.
I hope i have cleared you, IF you need further clarification please come back.
CAclubindia
