How to perform TDS on Purchase/Sales in RetailGraph

How to perform TDS on Purchase/Sales in RetailGraph

 

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.

 

TDS Implementation

 

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

 

Let's have a look into the following settings that need to be done in RetailGraph:

Steps that need to perform in RetailGraph


TDS Registration

             

1. In RetailGraph, go to Start-> Accounts->TDS Registration.

TDS Registration


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 registration in RetailGraph



 

TDS Through Purchase Entry


 

System Default Setting

 

3. To avail of the System Default settings, you need to click on Options-> System Default

 

System Default Setting


4. The Password window opens. Enter your Password and click on the Submit button.


click on the Submit button



 5. The System Default window opens. Click on the RetailG Settings tab.

 

RetailG Settings tab

 

6. In the RetailG Settings tab, you need to check the "Calculate TDS on Purchase" option. Click Save.

 

Calculate TDS on Purchase


7. The Password Verification window opens. Enter the password and click Submit.

 

password and click Submit

 

8. Now, you need to Exit from the software and need to re-login to avail the TDS settings.

 

Exit

 

Vendor Master


Vendor Master

You can set up for those vendors who come under TDS norms.

 

9. After successful re-login, go to Masters-> Customer/Vendor-> Vendor.



10. The Vendor window opens. Select a Vendor from the Name list and click From View.


From View


11. 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.

 

Attribute Detail



Apply TDS on Purchase Entry

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.

 

Purchase Invoice

 

13. The Purchase Invoice window opens. Select the vendor. Fill in the purchase details as per your requirement, and click Save.

 

click Save

 

14. The Notification window opens. Click No to save.

 

Click No to save



TDS Debit Note through Purchase Entry


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.

 

Ledger Account.

 

16. Select Account and click on the Edit button for which account you wants to apply TDS.

 

click on the Edit button

 

17. In the Ledger Account window, check the Apply TDS check-box. Click Save.

 

Click Save


 Create TDS Debit Note through Purchase Entry

 

18. Click Purchase-> Create TDS Debit Note.

 

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.

 

Note:

     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.

 

Create button

 

20. You will get the below screen for the successful creation of a debit note.

 

successful creation of a debit

 

View Purchase Debit Note

 

21. Click Purchase-> Purchase Debit Note.

 

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.

 

click on the Advances tab



View List of TDS Collected

 

24. To view the entire list of TDS collected, you need to click Reports-> Account Reports-> Ledger Display.

 

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.

 

System Default

 

26. The Password window opens. Enter your Password and click on the Submit button.

 

Submit button

 

27. The System Default window opens. Click on the RetailG Settings tab.

 

 RetailG Settings tab

 

28. In the RetailG Settings tab, you need to check the "Calculate TDS on Sales" tab. Click Save.

 

Calculate TDS on Sales

 

29. The Password Verification window opens. Enter the password and click Submit.

 

Submit

 

30. Now, you need to Exit from the software and need to re-login to avail the TDS settings.

 

Exit

 


Login



Customer Master

You can set up for those customers who come under TDS norms.

 

31. After successful re-login, go to Masters-> Customer/Vendor-> Customer.

 

Customer Master

 

32. The Customer window opens. Select a Customer from the Name list and click From View.

 

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.

 

Attribute Detail

 

34. The Warning window opens. Click No to save.

 

Click No to save

 

 

This way, RetailGraph gives you an easy method to get your TDS done. For more information, kindly contact our customer support.

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