Processing TDS Transactions

Note: Processing TDS transactions is similar to processing withholding transactions. The additional steps required for TDS processing are documented in this section.

Page Name

Definition Name

Usage

Withholding Information Page

VCHR_WTHD_EXP

Override the withholding for the individual voucher lines, and specify a contract reference number, if applicable.

Voucher Posting Request Page

PST_VCHR_RQST

Initiate the Voucher Posting Application Engine process (AP_PSTVCHR).

Update TDS Challan Information Page

WTHD_CHLN_INFO

View and update Challan information for TDS reporting.

Update Acknowledgement Number Page

UPD_ACKNO_PG

Enter acknowledgement numbers to be printed on the TDS certificate.

Use the Withholding Information page (VCHR_WTHD_EXP) to override the withholding for the individual voucher lines, and specify a contract reference number, if applicable.

Navigation:

Click the Withholding link on the Invoice Information page.

Specify a contract reference number, if applicable. Override withholding information for the individual voucher lines.

Note: The functionality for regular and prepaid vouchers for TDS processing is similar to processing general withholding transactions. While applying the prepayment against a voucher, the computation of TDS is the difference between the voucher TDS amount less the prepayment TDS amount.

During final voucher processing, PeopleSoft Payables verifies that both the type of payment (type and class) under the voucher and prepayment are the same.

Use the Voucher Posting Request page (PST_VCHR_RQST) to initiate the Voucher Posting Application Engine process (AP_PSTVCHR).

Navigation:

Accounts Payable > Batch Processes > Vouchers > Voucher Posting > Voucher Posting Request

The Voucher Posting Application Engine process (AP_PSTVCHR) performs the withholding calculations. The Voucher Posting process calls the Withhold Calculation Application Engine process (AP_WTHDCALC) to determine whether withholding vouchers exist.

Note: After you pay a voucher, you cannot unpost it.

Payment processing for TDS involves the following modifications:

Payment Selection and Creation

You must first post vouchers so withholding can be calculated; otherwise, the system excludes them from the pay cycle.

Withholding Calculation

A surcharge field computes the surcharge based on the tax amount calculated based on the withholding rule that you defined during TDS setup.

Accounting Entries are created during payment posting.

Supplier Payment

This table lists the accounting entries that are to be created for a supplier payment:

Account

Debit

Credit

AP Liability

8980

 

Bank

 

8980

TDS Payment

This table lists the accounting entries that are to be created for a TDS payment:

Account

Debit

Credit

Withholding Liability

1020

 

Bank

 

1020

The Withhold Calculation process monitors the withholding basis amount. Select the Cumulative option on the Withholding Entity page to indicate that the system should monitor voucher totals until it reaches the threshold amount that you specify.

Cumulative Option Selected

When a supplier's vouchers sum exceeds the threshold amount for a contract or for a period, the system calculates withholding for that supplier based on the total accumulated amount including the vouchers entered previously. After that supplier reaches the threshold amount, the system calculates withholding on every subsequent voucher based on the gross payment amount or transaction amount.

For example, the threshold amount is 10,000 INR for a given withholding rule and the Cumulative check box is selected. You create 3 vouchers with identical values for the withhold entity, type, jurisdiction, class, rule, supplier ID, and contract reference: V1 for 8000 INR, V2 for 7000 INR, and V3 for 5000 INR for withholding period 1. When V1 is voucher posted, no withholding entity payment schedule will be created since the voucher total amount has not reached the threshold of 10,000 INR for period 1. When V2 is posted, the withholding entity payment schedule will be created based on 15,000 (8000 INR from V1 + 7000 INR from V2) since the voucher total has exceeded the threshold. When V3 is posted, the withholding will be calculated for the voucher amount (5000 INR).

Cumulative Option Not Selected

If you do not select the Cumulative option, the system bases the withholding calculation on the withholding basis amount and the period withholding tier rule defined in the system.

Scheduled Pay Date

The system determines the scheduled pay date based on the accounting date if withholding is called at the time of voucher posting. The system stores withholding basis and withholding amounts to monitor the total amounts.

Note: The PeopleSoft Payables calculation module calculates withholdings at voucher posting or at payment processing, depending on the withholding calculation setting on the withholding entity and the voucher. Calculation for TDS transactions are performed at voucher posting. For those withholding transactions calculated at payment posting, the system determines the scheduled pay date based on the payment date.

Education Cess

In addition to calculating withholding and the surcharge amount for TDS requirements, PeopleSoft Payables also calculates the Education Cess tax levy. Use the Withhold Rule page to define the surcharge percentages and rule details for Education Cess. The system uses the withhold rule to calculate Education Cess. For example:

  • Invoice amount = 50,000 INR.

  • Percent withheld = 20.

  • Surcharge % = 2.

  • Additional surcharge % = 2.

The withhold amount is 10,000 INR (50,000 INR * .20). The surcharge amount is 200 INR (10,000 INR * .02). The system calculates the Education Cess amount by adding the withhold amount and the surcharge amount and multiplying that amount by the additional surcharge. The Education Cess amount is 204 INR ((10,000 INR + 200 INR) * .02). Therefore, the total gross amount for the withholding supplier is 10,404 INR (10,000 INR + 200 INR + 204 INR).

Use the Update TDS Challan Information page (WTHD_CHLN_INFO) to view and update Challan information for TDS reporting.

Navigation:

Accounts Payable > Batch Processes > Update TDS Challan Info > Update TDS Challan Information

This example illustrates the fields and controls on the Update TDS Challan Information page. You can find definitions for the fields and controls later on this page.

 Update TDS Challan Information page

Field or Control

Description

Calendar SetID, Calendar ID, Fiscal Year, and Period

Enter calendar, fiscal year, and period search information. The system returns and displays payment details whose withholding declaration date is within the period entered in the Period field.

Retrieve All Lines

Select check box to retrieve all lines. The system obtains and displays all payment details regardless if a Challan ID number or date of deposit has already been entered against the payment ID.

Paid Amount

Displays the total of the amounts paid for all suppliers with the same payment reference.

Challan ID Num (Challan ID number)

Enter the Challan ID number for that payment. The system displays the Challan ID number on the TDS Certificate (APY8080).

Deposit Date

Enter the date the tax payment was deposited as stamped by the bank on the Challan. The system displays the deposit date on the TDS Certificate (APY8080).

Use the Update Acknowledgement Number page (UPD_ACKNO_PG) to enter acknowledgement numbers to be printed on the TDS certificate.

Navigation:

Accounts Payable > Batch Processes > Update TDS Acknldg Number

This example illustrates the fields and controls on the Update Acknowledgement Number page. You can find definitions for the fields and controls later on this page.

 Update Acknowledgement Number page

Field or Control

Description

Business Unit

Displays the business unit entered on the Add a New Value page.

Withholding Entity

Displays the withholding entity entered on the Add a New Value page.

Calendar SetID

Displays the calendar SetID entered on the Add a New Value page.

Calendar ID

Displays the calendar ID entered on the Add a New Value page.

Fiscal Year

Displays the fiscal year entered on the Add a New Value page.

Period

Displays the period entered on the Add a New Value page.

First Quarter, Second Quarter, Third Quarter, and Fourth Quarter

Enter the acknowledgement number of the previous quarter's TDS return for each quarter. These are place holders for the acknowledgement numbers received from the tax department after filing the returns for first, second, third and fourth quarters respectively. The values entered here will be displayed on the TDS certificate.

Tax Deducted

Enter the amount of tax remitted in respect of the deductee in relevant quarter.

Tax Deposited

Enter the amount of tax deposited in respect of deductee in relevant quarter.