From July 1, 2021, new TDS norms for purchases of goods and higher TDS rates for non-filers of ITR will come into force. In which the buyer of the goods has to deduct TDS from his seller at a certain percentage on the purchase of the goods. The rule is to mandate tax deduction or tax collection at a higher TDS rate for non-filers of ITR.
What is TDS & Why TDS?
TDS plays an important role in preventing malpractices like non-disclosure of income. Generally, the tax needs to pay tax on the person who earns the income. TDS puts on the person paying the amount to deduct tax on behalf of the person receiving the payment.
The buyer has to deduct TDS and the value of the transaction on which the deduction is to be made. You can get information about it from section 194Q. It is very similar to the last year's TCS provisions imposed on the sales of the goods.
In this blog, we will see how RetailGraph makes TDS easy for Businesses. Here, we will show you the step-wise TDS filing procedure, which will help you perform the whole process in RetailGraph.
To implement TDS in RetailGraph, the user need to update the RetailGraph version at his end to apply TDS. After getting it updated, RetailGraph offer three ways to deduct TDS-
➤ TDS through Purchase Entry
➤ TDS Debit Note through Purchase Entry
➤ TDS through Sales Entry
Steps that need to perform in RetailGraph
2. The TDS window opens. Here, you need to fill the Password field issued by the SWIL. You need to select
-TDS Collected in the TDS (Purchase Invoice) drop-down &
-TDS Collected (Debit Note) in the TDS (Debit Note) drop-down
Now, click on the Register tab to get the TDS registration in RetailGraph.
Note: Other mentioned details are put in as per the current government guidelines for TDS, and it may change later if there are any changes in guidelines.
TDS Through Purchase Entry
System Default Setting
3. To avail of the System Default settings, you need to click on Options-> System Default.
4. The Password window opens. Enter your Password and click on the Submit button.
5. The System Default window opens. Click on the RetailG Settings tab.
6. In the RetailG Settings tab, you need to check the "Calculate TDS on Purchase" option. Click Save.
8. Now, you need to Exit from the software and need to re-login to avail the TDS settings.
You can set up for those vendors who come under TDS norms.
10. The Vendor window opens. Select a Vendor from the Name list and click From View.
The TDS on purchase feature works when you want to deduct TDS at the time of purchase.
12. To perform TDS on purchase, you need to go to Purchase-> Purchase Invoice.
13. The Purchase Invoice window opens. Select the vendor. Fill in the purchase details as per your requirement, and click Save.
14. The Notification window opens. Click No to save.
Create TDS Debit Note for Purchase entry feature works when you want to create TDS Debit Note against Purchase Invoice Entry.
15. To perform TDS Debit Note through purchase entry, you need to go to Masters-> Accounts-> Ledger Account.
16. Select Account and click on the Edit button for which account you wants to apply TDS.
17. In the Ledger Account window, check the Apply TDS check-box. Click Save.
Create TDS Debit Note through Purchase Entry
18. Click Purchase-> Create TDS Debit Note.
19. Here, you get the following window, which shows the purchase list that comes under TDS. You can select the desired Purchase entry. Select the Entry Date and Series for which you want to generate a debit note.
Here, you need to tick a mark on the option "Separate Debit Note for each invoice." Then, click on the Create button.
➤ This feature will create a separate debit note for each purchase invoice and make a purchase settlement.
➤ If we do not mark it, then the debit note will be created in bulk and purchase settlement will not be done.
20. You will get the below screen for the successful creation of a debit note.
View Purchase Debit Note
21. Click Purchase-> Purchase Debit Note.
22. The Purchase Debit Note window opens.
Here you get the view of the details of the Purchase Debit Note, which was created earlier.
Click on Add/Less to view the created debit note TDS details.
23. Click on the Payment Details feature. A Payment Details window opens, where you need to click on the Advances tab to get details of the purchase entry which is adjusted.
24. To view the entire list of TDS collected, you need to click Reports-> Account Reports-> Ledger Display.
TDS Through Sales Entry
System Default Setting
25. To avail of the System Default settings, you need to click on Options-> System Default.
26. The Password window opens. Enter your Password and click on the Submit button.
27. The System Default window opens. Click on the RetailG Settings tab.
28. In the RetailG Settings tab, you need to check the "Calculate TDS on Sales" tab. Click Save.
29. The Password Verification window opens. Enter the password and click Submit.
30. Now, you need to Exit from the software and need to re-login to avail the TDS settings.
You can set up for those customers who come under TDS norms.
31. After successful re-login, go to Masters-> Customer/Vendor-> Customer.
32. The Customer window opens. Select a Customer from the Name list and click From View.
33. Click on the Attribute Detail option from the right end of the window. The Attribute Detail window opens. Select attribute as TDS from the list and click OK.
34. The Warning window opens. Click No to save.