Odoo – TDS computation on Supplier Invoice
Odoo – TDS computation on Supplier InvoiceProblem 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:
Open Accounting -> Configuration -> Taxes -> Taxes
Create New Tax
Output Service Tax @ 12.36% :
- TDS @ 10% :
(Make sure you give Minus Sign ‘-’ before percentage value i.e “-0.10” )
- Create New Supplier Invoice, Apply Tax and Click on (update) to Check the Calculation.
- Create New Supplier Invoice, Apply Tax and Click on (update) to Check the Calculation.
- Accounts should be Given Properly as required in each Section.
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