How to implement TDS setting in Unisolve
TDS on Purchase of Goods: FROM 1ST July 2021- NEW TDS PROVISION ON PURCHASES OF
GOODS | SECTION 194Q | ANALYSIS OF SECTION 194Q
A new provision of TDS is coming into force on the purchase of ‘goods’
with effect from 1st July 2021, under which the buyer of the goods has to
deduct TDS from his seller at a certain percentage on the purchase of the
goods. You will remember that last year the provisions of TCS on the sale of goods
came through section 206(C) (1H) and the provisions of TDS of 194Q are very
similar to the provisions of these TCS. The buyer who has to deduct TDS and the value of the transaction on which deduction is to be made is clearly mentioned in Section 194Q which we will see in this study.
Let us study these provisions under section 194Q applicable to TDS on
Purchases of Goods from July 1, 2021, and let us try to understand what are
these new provisions and whether there is any relation these provisions have
with section 206(C)((1H) introduced last year only with respect to TCS on sale
of Goods. We will also analyze that there may be a similarity that may have
practical significance also. In some situations, there may be overlapping
because in some situations both the provisions are applicable on a single
transaction and this situation is really creating confusion in the mind of the
Let us try to understand in very simple language the provisions of TDS of
section 194Q on the purchase of goods with effect from July 1, 2021, so that
these provisions can be followed after proper understanding of the same.
1. Section 194Q is applicable to which buyers: –
Section 194Q of TDS is applicable only to those buyers whose
turnover, gross receipt or sales in the previous year was more than Rs.10
crores hence in the financial year ended on 31st March 2021, the buyers whose
turnover was more than Rs.10 crore in that year, they have to deduct TDS from
their resident seller on the purchase of above Rs.50 lakh in the current financial year 2021-22. This TDS is to be deducted on the balance amount
leaving the first Rs 50 lakh per seller and it is applicable from 1st. July
Therefore, if the turnover of a buyer is less than Rs.10 crore in the
year ended March 31, 2021, he does not have to comply with this provision in
current financial year, thus a large number of buyers will remain outside this
provision of TDS. You can say that the provision is applicable on relatively
2. From which Sellers to deduct TDS: –
TDS at the rate of 0.1% is to be deducted on the amount exceeding Rs. 50
lakhs in any one financial year from one seller from whom the buyer as
mentioned has purchased goods worth more than Rs. 50 lakhs. We should Keep in
mind here that this seller should be a resident of India i.e., resident as per
the Income Tax provisions.
3. On which amount TDS is to be deducted: –
This TDS is to be deducted only on the amount above Rs 50.00 lakh in a
financial year from one seller i.e., if the purchase is for Rs 67.00 lakh then
the Buyer has to deduct TDS only on the amount above Rs 50 lakh i.e., on Rs
17.00 lakh. Keep in mind here that every year if TDS is to be deducted under
this section, then for each seller, the buyer will have to deduct the first Rs. 50
Lakhs then deduct TDS on the remaining amount. This is one-time seller-wise
deduction for each seller in every financial year.
For example, if a buyer buys goods from a particular seller worth Rs
70.00 lakh each 4 times, then in this way in a financial year, he bought a
total of 280.00 lakhs, then now he has to deduct Rs 50.00 lakh from it and the
TDS has to be deducted only on Rs.230.00.
Now one more thing to keep in mind that this limit of Rs 50
lakh is for one financial year for each seller, so now that this provision is
applicable from 1st July 2021 then TDS you have to deduct only on purchases
after 1st July 2021 but While ascertaining the limit of purchase Rs. 50.00
Lakhs, the purchases from April 1, 2021, the purchase will also have to be
taken into account.
(All above matter regarding TDS picks through multiple websites)
SWIL is not liable for the accuracy of
Step1: As per your Turnover & if you want
to enable TDS settings in Unisolve, then we will provide a password for the TDS
Registration (On a Chargeable basis). We have given the TDS Registration option in
Utility menu. In this window we have provided you the following details:
Company Name: Software auto pick this as per your
running Current Year Company.
Station: Software auto pick this as per your
Software auto picks this as per your Unisolve Registration.
Password: SWIL provides you this password when you
want to implement TDS in Unisolve. (It’s Chargeable basis). Due to Covid-19
pandemic, we have not charged any amount regarding TDS up to 31/07/2022. Please
blank this password & press on OK button, then It’s required only Today’s Password
and it can be used till 31.07.2022. You can see Today’s Password details in the following article:
We have explained you how to charge TDS
& make Debit Note as per your Purchase Invoices. Details as per following:
Apply TDS: When you enable this option, In this
option you have done your working (Purchase) on per regular basis. After enabling
this option, Software creates Debit Note for TDS as per your Purchase Invoices.
Charge TDS in Invoice: When you enable this option, then software
auto calculate & charge TDS in Purchase Transaction. If you “tick” this
option, then it will auto calculate your TDS as per your Purchase Invoices.
Please mention TDS Applicable Date “01/07/2021” & By default software takes
0.1 Rate in With PAN Option & 5.00 in without PAN Option.
On Invoice Exceeding
Default software auto pick 50 Lacs in this column.
TDS Deduction A/c: By Default software auto generate a new
Account name with “TDSDED” code. In
this Account software auto posted your TDS Deduction amount automatically.
After that when you press OK to save this
window then software asked Password. This Password will link with Today’s
password pattern. (Please check Today’s password article for know about Today’s
password, else call to our local Distributor/Dealer
this article we have explained you both options for charged TDS in Unisolve.
How to make TDS
Through this option you have done your
all working like: (Purchase) as per regular basis, when your Transaction more than
50 Lacs (Gross Amt., Without GST) with particular one supplier, then software
provides you a new option “Create TDS Debit
Note” in Purchase menu.
When you make any Supplier’s Purchase more
than 50 Lacs then Software shows auto a warning message to make TDS entry at
the time of enter Purchase Invoice.
If you want to make TDS entry in Purchase Invoice through
Billing Head (Ctrl+K) option, then no need to create any TDS Debit Note &
software also not showing these Purchase Invoices at the time of generate TDS
When you enter your Purchase Invoice,
then software will auto calculate TDS amount in Purchase Invoice as per given %
in TDS Deduction when any Supplier’s Purchase done more than 50 Lacs. Please use “Ctrl+K” (Billing Head) to enter the TDS amount in Purchase
Invoice. When you press the “Ctrl+K” key
then the software opens a new window “Billing
Head”. In this window, you can Less
the “TDSDED” Billing Head & then enter the TDS
amount as per your Purchase Invoice & press OK without select any
Tax Code & without entering any Qty.
Billing Head option you can check through
“Ctrl+K” key in Purchase
Transaction. In this option you can see an entry or TDS Deduction. Software
auto shows TDS message to charge TDS while TDS condition applicable of
particular that Supplier as per TDS Registration. TDS % differs if you do not
enter PAN No. in Particular Supplier’s Account as per TDS Registration window.
If you do not make any TDS entry in Purchase Invoice through
Billing Head (Ctrl+K), then you need to create a TDS Debit Note entry.
For generate TDS Debit Note, Please select
“Create TDS Debit Notes” option
through Purchase Menu. Software calculates & charged TDS Amount Gross Value
(Before GST) of your Purchase Invoice. When you open this Software following
Date Range: Select Date range as per your
Series: Select Purchase Series. Software shows
Purchase Invoice & Transfer In both series in this option.
Supplier List: You can select Multiple Supplier also
through this Supplier List. If you do not select any supplier then software
auto shows all Suppliers’ Purchase Invoice which under TDS in this table to
make TDS Debit Note.
Select Debit Note Voucher = “Debit Note”: Software select by default Debit Note
Voucher series in this option. No need to change this.
Separate Debit Note for each Invoice and
If you enable this option, then software makes separate TDS Debit Note entry
for each Purchase Invoice & also auto adjust the same in relevant Purchase
If you do not want to create separate
entry of Debit Note for each Invoice, then please disable this, then software
make only one Debit Note entry of Supplier’s Invoice as per given Date range.
Screen as per below:
After that software opens a new window
with Supplier Name, Purchase Invoice No., Purchase Invoice Date, Purchase
Amount, TDS Applicable Amount, TDS Rate & TDS Amount. When you press OK in
this screen then software auto-generate Debit Note voucher in Accounts->
Transaction -> Voucher menu. Screen as per below:
-> “Create TDS Debit Notes”:
Transactions-> Voucher: “Debit Note”
You can also check TDS Deduction A/c
through Account Statement. You can also check this Account’s complete statement
through Accounts-> Statement-> Account Statement (F9). Screen as per below:
If you want to calculate TDS in Sales
Invoice only & also wants to print on your Invoice Format, without any
calculation in your Sales Invoice. For this, when you make Sales Invoice then
software auto shows TDS Calculation message if any your Customer is in under
TDS & you already mark enable “TDS Applicable” in Accounts –> Master
Data -> Accounts.
After that when you make sales invoice
then software shows TDS Calculation message at the time of saving Sales
Invoice. Screen as per below:
In that case, Software shows only a message not less TDS Amount in the Sales Invoice. If
you want to print the TDS amount & TDS Calculation amount in your Invoice
format, then you can print this & also print the Payable amount also after
deduct TDS value. To print this please used the following variables:
For Print TDS
For Print TDS
Charged on Amount: mTdsAmtOn
as per below:
If you want to calculate & charged
also TDS in Sales Invoice also wants to print on your Invoice Format, with
calculation in your Sales Invoice. For this, please mark True in “Add Auto Entry When TDS Apply in Sales”
through System-> System Maintenance-> System Parameters menu. Screen as
After that when you make Sales Invoice
then software auto shows TDS Calculation at the time of saving Sales Invoice &
also auto charged TDS in your Sales Invoice under Billing Head (Ctrl+K) with
selection of Account “TDS Deducted By
Customer”. Screen as per below:
can also check complete Invoice Tax Calculation Breakup with TDS Deduction
through the F7 key. Screen as per below:
When received Payment Receipt after deduction of TDS, then at the time of Receipt entry, you can also show TDS Deduction under Rebate. Please mention TDS Deducted by Customer account under Rebate A/c name. After that when you make a Receipt then enter your TDS amount which is deducted by your Customer under Rebate. Screen as per below:
After that when you check your Customer’s Ledger then the software shows TDS Deduction also in Receipt entry narration. Screen as per below:
You can also check & generate TDS Report through Reports menu.
After entering this report, you can mention the Date Range as per your requirement. After that, if you want to show your Suppliers report then please select on Purchase Tab. After that, select Supplier name through Supplier List. In this report we have given some selection options, which we explained to you as per following:
Print Only Calculated TDS Invoice: When you enabled only this then software shows only TDS Calculated Purchase Invoice List. It means shows only those which software calculate TDS but not adjust in Purchase Invoice & not make any TDS Debit Note yet.
Print Applied TDS Invoices: When you enabled only this then the software shows only TDS Applied Purchase Invoice List. It means shows only those which you make TDS Deduction through Billing Head (Ctrl+K) in Purchase Invoice.
Print Adjusted Dr. Note TDS Invoice: When you enabled only this then software shows only already Adjusted TDS Debit Note Purchase, Invoice List. It means shows only those with you already make TDS Debit Note & adjust Debit Note in Purchase Invoice also.
Print Total after each party: When you enabled this then software shows Party wise Total also.
Screen as per below:
For more details,
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