Calculation of TDS

Dear all,

I have posted an Purchase Order where TDS is applicable. But by mistake I did’nt calculate TDS in that purchase order and post the same.

Now how I am going to assign TDS value in that purchase order?

Kindly reply.

Reverse thru credit memo and post the correct invoice

Thanks for the reply… Actually after purchasing the items (thru purchase order posting), I have sold the items (with item tracking) thru sales order.
In that case how I pass a credit memo?

Please also suggest me that if I do the Apply-to-doc functionality from purchase journal, will it be a correct step?

Using purchase journal to reverse a transaction, where purchase invoice does not seems to be the correct approach if Indian taxes are involved but otherwise it is fine except that there will no posted document (Purch. Cr. Memo Header/line).

Hi All,
One of my clients faced a problem-- In a purchase invoice (purchase of a customised software on which Service Tax & TDS is applicable) user had calculated service tax (as applicable) but forget to calculate TDS . The purchase invoice was posted and thereafter the purchased items(MS License) are sold out thru sales invoice.

Then what is the solutions?

I am wondering the person selling MS license will be other than the partner himself. The only question is that will you deduct TDS on purchase of customized software? Will you deduct TDS from the payment made to MS?

Thanks for the reply. Actually our client purchased the customised software NOT from Microsoft but from a different vendor. It is a usual business practice that when a vendor raises a bill charging Service Tax, the purchaser will deduct TDS from the bill amount of the customised software.

Now please suggest me as to how to rectify the TDS calculation which was grossly overlooked (i.e. NO TDS was calculated by Calculate Structure Values functionality) by the client.

As I have explained earlier, you need to reverse and repost. In case the item is sold you can reverse and repost using G/L account.

Thanks for the reply.

But in case I repost using G/L accounts, how the fields in Service tax entry table - (Ecess & SHE Cess on Service Tax) get updated ?

Please suggest.

Sevice tax is by default calculated on G/L accounts only. Can you post some transactions and check?