27 Calculating TDS

This chapter contains the following topics:

• Section 27.1, "Calculating TDS on Prepayments"

• Section 27.2, "Calculating TDS on Suspense Accounts"

• Section 27.3, "Calculating TDS on Receipts"

See Also: Setting Up Localizations for India Setting Up the System for TDS and WCT

27.1 Calculating TDS on Prepayments

This section discusses how to calculate tax deducted at source (TDS) on a prepayment.

27.1.1 Calculating TDS on a Prepayment

To calculate TDS on prepayments:

1. Use standard and India-specific software to enter the prepayment information.

   You enter TDS information on the India-specific entry form that the system displays after you enter standard prepayment information.

2. Calculate TDS.

   See Calculating TDS.

3. Use the standard and India-specific software to enter the voucher.

   You enter TDS information on the India-specific entry form that the system displays after you enter standard voucher information.

4. Use the standard software to split the payment into the nonpaid and prepaid amounts.

5. Apply the prepayment.

6. Run the TDS calculation for the nonpaid amount.

See Also: ”Processing Prepayments” in the JD Edwards EnterpriseOne Applications Accounts Payable Implementation Guide

27.2 Calculating TDS on Suspense Accounts

This section discusses how to calculate TDS on a suspense account.

27.2.1 Calculating TDS on a Suspense Account

To calculate TDS on a suspense account:

1. Enter the receipt for your purchase order.

2. Use standard and India-specific software to enter the logged voucher.

   You enter TDS information on the India-specific entry form that the system displays after you enter standard information.

   See Entering Vouchers for TDS and WCT.

3. Calculate the TDS.

   See Calculating TDS and WCT.

4. Match the logged voucher to the receipt when you receive the final invoice.

See Also: ”Processing Logged Vouchers” in the JD Edwards EnterpriseOne Applications Accounts Payable Implementation Guide

27.3 Calculating TDS on Receipts

This section discusses how to calculate TDS on receipts.

27.3.1 Calculating TDS on a Receipt

When you work with accounts receivable transactions, you might need to calculate TDS that is deducted by customers at the time of collection. The JD Edwards EnterpriseOne Accounts Receivable system handles this type of a transaction in a similar manner to how it handles write-offs and charge backs.

To work with these transactions:

1. Create a reason code for the TDS deducted amount in UDC table 03B/RC.

2. Use the reason code that you create when you match receivables to invoices.

3. Close the invoice.