TDS on purchase voucher

To ensure that TDS is deducted on all purchase vouchers in Tally Prime, you must maintain correct master configurations. If the settings are not applied correctly at the ledger level, TDS will not be calculated during voucher entry.

1. Verify Configuration Requirements

• Enable TDS Feature: Ensure TDS is enabled in your company features by pressing F11 > setting Enable Tax Deducted at Source (TDS) to Yes.

• Configure Party Master:

  • Go to Gateway of Tally > Alter > Ledger > Select the Party/Supplier Ledger.

  • Set Is TDS Deductible to Yes.

  • Select the appropriate Deductee Type.

  • Ensure the party’s PAN is entered.

• Configure Purchase/Expense Ledger:

  • In the expense or purchase ledger, set Is TDS Applicable to Applicable.

  • Select the correct Nature of Payment.

2. Ensuring TDS Calculation in Vouchers

To ensure TDS is triggered, verify the following during voucher entry:

• Voucher Mode: When recording a purchase (F9), ensure the mode is correct (e.g., Accounting Invoice or Item Invoice).

• Manual/Automatic Deduction: If you want Tally to calculate TDS automatically, ensure you have selected the correct Nature of Payment in the party and expense ledgers. If Tally is not calculating it automatically, you can manually select the TDS duty ledger at the end of the voucher entry to force the calculation.

• Threshold Limits: Verify if the transaction amount exceeds the Threshold/Exemption limit defined in your "TDS Nature of Payment" master. If the amount is below the limit, Tally will not calculate TDS.

3. Compliance and Audit Checks

You can use Tally’s built-in reports to identify missed deductions:

• TDS Reports: Go to Gateway of Tally > Display More Reports > Statutory Reports > TDS Reports.

• Ledgers Without PAN: Check this report to find parties where TDS may have been skipped due to missing PAN information.

• TDS Outstandings: This report shows pending TDS payments, allowing you to cross-verify if the deduction was correctly accounted for against your purchase vouchers.

If you are using a specific section (like 194Q for purchase of goods), ensure that the "Nature of Payment" linked in both the party and purchase ledger is the same to ensure seamless automation.

Tally Prime: How to Record TDS Under Section 194Q on Purchase

This video provides a comprehensive, step-by-step walkthrough for configuring and recording TDS on purchase transactions to ensure full tax compliance in Tally Prime.

Summary: Ensure the "Is TDS Deductible" option is enabled in the Party Master and "Is TDS Applicable" is set in the Purchase/Expense Ledger; regularly review the "TDS Outstandings" and "Ledgers Without PAN" reports under Statutory Reports to identify and rectify any missed deductions.