Odoo ERP – 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” )
-
- Accounts should be Given Properly as required in each Section.
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