Odoo – TDS computation on Supplier Invoice

Problem Definition
In India, while processing a Supplier Invoice whose value is greater than INR 20,000, the Company should deduct a percentage of value (Defined for various categories of Service) from the invoice and pay the remaining amount to the Supplier.

Example:

Untaxed Amount

1,00,000

Service Tax 12.36%

12,360

Total Value (Payable)

1,12,360

At the time of validating the invoice, the Company deducts the TDS

TDS 10% on Untaxed Amount: 10% of 100000

10,000

Original Payable Amount

1,12,360

(Less) TDS Amount

10,000

NET PAYABLE AMOUNT

1,02,360

Upon invoice validation, the following accounts should be affected.

Untaxed Amount

Purchases Account

Tax Amount

Tax Payable Account

TDS Amount

TDS Payable Account

NET PAYABLE AMOUNT

Accounts Payable Account (Sundry Creditors)

Solution:

    1. Open Accounting -> Configuration -> Taxes -> Taxes

    2. Create New Tax

      1. Output Service Tax @ 12.36% :
        Odoo-TDS-1

      2. TDS @ 10% :
        (Make sure you give Minus Sign ‘-’ before percentage value i.e “-0.10” )
        Odoo-TDS-2

 

    1. Create New Supplier Invoice, Apply Tax and Click on (update) to Check the Calculation.
      Odoo-TDS-3

 

  • Accounts should be Given Properly as required in each Section.

 

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