How to record purchase bill payments with TDS?

There are two ways to record purchase bill payments with TDS (Tax Deducted at Source):

1. Deduct TDS while recording payment for an existing purchase bill.

2. Apply TDS while creating a new purchase bill.

   
   

Let's explore both methods in detail below:

1. Deduct TDS while recording the payment of an already existing purchase bill.
   
   Type Ctrl+G or Command+G and search the vendor ledger
   
   

 The vendor ledger will open

 Make the entry of the amount on the receiver side of the ledger and hit “add to DR” 

Select TDS payable from the dropdown in the particular field and enter the TDS amount.

Your TDS entry directly from the ledger is done.

2. How to record TDS while recording the purchase bill 

Press Ctrl+G or Command+G and go to the new purchase bill

Select the vendor name from the drop-down for whom you want to create the purchase bill.

Select the product/ service description of the vendor.

Enter the total amount to be paid in the amount field and then click the checkbox of “other tax” for TDS. 

A pop-up appears where you have to select the type of TDS (payable/receivable).

You can check the total amount and then save the bill from the bottom right corner.