Enter TDS transactions

The ability to track TDS is only available in QuickBooks Plus.

You can record the Tax Deduction at Source (TDS) you are due to receive and what you need to pay by entering the TDS receivable when you receive payment from a customer, or entering the TDS payable when you pay a supplier.

Enter TDS when you receive payments

When you receive payment from a customer, invoice them for the total amount. When you collect payment, enter the base amount and the TDS amount separately. The customer is responsible for claiming the TDS amount when they file their tax return, and you have a record to prove you accounted for the TDS amount.

To track TDS when you receive payment:

  1. Click Create (+) > Receive Payment.
  2. Choose the invoice you are applying the payment against by selecting the checkbox beside the appropriate invoice.
  3. Divide the payment between the Payment and TDS columns. For example, if the customer was invoiced for 100.00 plus 4.00 tax, enter 100.00 in the Payment field and 4.00 in the TDS field.

    The TDS is debited to the TDS Receivable account.

Enter TDS when you pay bills

When you enter a bill from a supplier, enter the total amount (base plus tax). When you make your payment, enter the base amount and the TDS amount separately. You are responsible for claiming the TDS amount when you file your tax return. To track TDS when you make a payment:

  1. Click Create (+) > Pay Bills.
  2. Choose the bill(s) you are paying by selecting the checkbox beside the appropriate bill(s).
  3. Divide the payment between the Amt to Pay and TDS columns. For example, if you were billed 100.00 plus 4.00 tax, enter 100.00 in the Payment field and 4.00 in the TDS field.

    The TDS is credited to the TDS Payable account.

See also