TDS on vendor payments

What you’ll do: deduct the right TDS on vendor bills, deposit it, and file the quarterly statement.

Who can do this: accountants. Company Admins set up sections.

Steps

1. In Dexta Books, open Settings and TDS on vendor payments. Click Add a section with its Payment code, the old section it replaces (Was section), the Rate % and the thresholds.
2. On each vendor bill, choose the TDS section (or No TDS). Dexta works out the TDS; Set the TDS by hand if you need to.
3. Open TDS under Tax. To deposit shows what’s due. Pay it on the income-tax e-Pay Tax portal with Challan 281.
4. Click Record challan and enter the Date of deposit, BSR code and Challan serial.
5. On Quarterly return, make Form 140 (26Q) for the quarter. Check the file with Protean’s FVU, file it, then click Mark as filed.

Good to know

• Payments to non-residents use Non-residents (144).
• A vendor with a lower or nil deduction certificate: open Certificates and click Record one. Choose a certificate from the tax officer (Form 128) or the payee’s declaration (Form 121, was 15G/15H).
• Salary TDS is filed from Dexta Pay as Form 138. In Books, use Record Form 138 filed so the books agree.
• TDS on receipts (26AS) matches tax your customers deducted from you, and TCS (Form 143) covers tax you collect.

Related

• Filing Form 138 (was 24Q)
• Approving expense claims
• Dexta Books