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:

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

2. Create New Tax

   1. 

      Output Service Tax @ 12.36% :
      
      

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

       

      

1. 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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