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 taxpayers.

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 2021,

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 big buyers.

 

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 this content..

In this article, we have explained to you How to implement & calculate TDS when applicable in your Purchase/Sales in Unsolved. Know about these features, we have explained to you all points/features as per the following:

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 Company Information

Registration No.: 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:

https://support.swildesk.com/portal/en/kb/articles/how-to-find-out-today-s-password

 

We have explained you how to charge TDS & make Debit Note as per your Purchase Invoices. Details as per following:

1.     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.

2.     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.

 

Applicable From: 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 Amount: By 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

 

After update new patch software auto-enabled “TDS Applicable” in all Accounts in Accounts-> Master Data menu. Please enter PAN & Aadhar No. in these accounts. Screen as per:

 

In this article we have explained you both options for charged TDS in Unisolve.

 

How to make TDS Debit Note:

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.

a.     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 Debit Note.

 

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.

 

b.     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 some options:

1.     Date Range: Select Date range as per your requirement.

 

2.     Series: Select Purchase Series. Software shows Purchase Invoice & Transfer In both series in this option.

 

3.     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.

 

4.     Select Debit Note Voucher = “Debit Note”: Software select by default Debit Note Voucher series in this option. No need to change this.

 

5.     Separate Debit Note for each Invoice and Auto Adjust: 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 Invoice.

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:

Purchase -> “Create TDS Debit Notes”:

 

Accounts-> 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:

         

How to Calculate & Charge TDS on Sales Invoice