How can Labour Contractor Record Service Tax and TDS in Tally.ERP 9 ?

>> October 4, 2009


Problem

I am a building labour contractor and received payment from the builder as

Eg:- bill amt 10,00,000

Service tax 10.3% + 1,03,000
---------------------------------------------------------------
Total 11,03,000


Less T.D.S. 2.266% - 24,994 (Some do less as 2.06%)
------------------------------------------------------------------
Net I receive 10,78,006
==============================================

I do payment to my sub-contractor by same way but T.D.S only is diff. as 1.133%

I want to start doing accountant by my self, so I asked my acct how to set in tally 9. But he do all the thing in tally 4.5ver and It has Revenue account but tally9 don’t and how to set in tally9, ABC Company is from I/we received amount

Eg. He write in as for received Amt.

First entry in journal:-

Debit Credit
By ABC Company 11,03,000
To Building const. chgs. Received 10,00,000
To Service tax 1,03,000

Second entry in journal:-
Debit Credit
By T.D.S. (08-09) 24.994
To ABC Company 24,994


Third enrty in receipt :-

Debit Credit
To ABC Company 10,78,006
By Bank Acct. 10,78,006


Eg. He write in as for Payment Amt.

First entry in journal:-

Debit Credit
By Labour Charges Paid 30,000
By Service Tax 3,090
To Xyz enterprise 33,090



Second entry in journal:-

Debit Credit
By Xyz Enterprise 375
To T.D.S.Paid 375


Third enrty in Payment:-

Debit Credit
By Xyz Enterprise 32,715
To Bank Acct. 32,715



List of Group as Follows:-

Our business's

List of Groups

-------------------------------------------------------

Branch / Divisions (Subsidiary Firms)

Capital Account (Equity)
Reserves & Surplus (Retained Earnings)

Current Assets
Bank Accounts
Cash-in-hand
Deposits (Asset)
Loans & Advances (Asset)
Stock-in-hand
Sundry Debtors (Accounts Receivable)

Current Liabilities
Duties & Taxes
Provisions
Sundry Creditors (Accounts Payable)

Fixed Assets (Immovable Properties)

Investments

Loans (Liability)
Bank OCC a/c
Secured Loans
Unsecured Loans

Misc Expenses (ASSET)

Profit & Loss A/c (Profit & Loss Account)

Revenue Accounts
Bldg.Const.Charges Received
Expenditure Account
Expenses (Direct) (Mfg./Trdg. Expenses)
Expenses (Indirect) (Admin. Expenses)
Income (Revenue)
Purchase Account

Suspense Account (Temporary A/cs)

30 Groups



our business's

List of Ledger Accounts

---------------------------------------------------------------

Branch / Divisions (Subsidiary Firms)

Capital Account (Equity)

Reserves & Surplus (Retained Earnings)
- Fringe Benefit Tax
-Jayesh Bhimji Patel
-Santosh s Sawant

Current Assets

Bank Accounts
-The Satara Sahakari Bank Ltd.

Cash-in-hand
-Cash

Deposits (Asset)

Loans & Advances (Asset)

Stock-in-hand
-Closing Stock

Sundry Debtors (Accounts Receivable)
-ABC Company
-T.D.S.(08-09)

Current Liabilities

Duties & Taxes

Provisions
-Accounting Charges Payable
-Audit Fees Payable
-Mobile Expense Payable
-Professional Fees Payable
-Service Tax Payable


Sundry Creditors (Accounts Payable)
-Gokul Ply Centre
-Himmat Elecrtic & Hardwar
-Jalaram Timber
-Xyz Enterprises
-Square Engineering Corporation
-Umiya Shuttering Plywood
-Vikram Power Tools
-T.D.S.Paid

Fixed Assets (Immovable Properties)
-Car A/c
-Centering Plate
-Computer
-Machinery
-Motor Car
-Prov.for Dep.-Centering Plate
-Prov.for Dep.-Computer
-Prov.for Dep.-Machinery
-Prov.for Dep.-Motor Car

Investments
Loans (Liability)
Bank OCC a/c
Secured Loans
Unsecured Loans
-Jay Laxmi Enterprise
-Shree Neelkanth Enterprise

Misc Expenses (ASSET)

Profit & Loss A/c(Profit & Loss Account)
-Profit & Loss A/c

Revenue Accounts
Bldg.Const.Charges Received
-Building Const,Chgs.Received
-Service Tax

Expenditure Account
Expenses (Direct) (Mfg./Trdg. Expenses)
-Labour Charges Paid
-Service Tax Paid

Expenses (Indirect) (Admin. Expenses)
-Accounting Charges
-Audit Fees
-Bank Charges
-Conveyance Expense
-Depriciation
-Discount
-Donation
-Electric Expenses
-ICICI Bank Credit Card
-Insurance Charges
-Interest on Loan
-Interest to Partner
-Misc.Expense
-Mobile Expense
-Petrol & Diesel Expense
-Processing Charges
-Professional Fees
-Registration Charges Of Car
-Remuneration to Partner
-Repairs & Maintainance A/C
-Salary Paid
-Site Expense
-Supervision Charges Paid

Income (Revenue)

Purchase Account
-Building Material
-Iron & steel
-Labour
-Machinary
-Wood

Suspense Account (Temporary A/cs)
-Suspense

How to set all this in tally 9 and tally ERP 9
Is tds dedected by ABC Company can be set as TCS, How to set for Building Labour Contractor in which TDS is 2.266% And what will it for TCS( Code for section & Payment Code for it)
With respect to eg:- of it


Solution

I think, you have watched my video relating to accounting treatment of TDS in Tally.ERP 9. In general recording, both Tally 9 and Tally.ERP is best version for recording TDS and filling its return.

You know that TDS is means tax deducted at source. If you have obtained the payment, then this amount will be deducted from your payment and if you have given the payment then your duty is to deduct it and deposit in govt. account. I think, you have to transfer your all record in tally 9 or tally.ERP 9 and you have facing some problem relating to TDS.

For your knowledge, I have already written full accounting treatment of TDS in Tally.ERP 9. You must learn it here . In this tutorial, I have written step by step procedure of recording TDS in Tally.ERP 9. For your knowledge, I want to tell you that both service tax and TDS will be recorded only if you activate it feature (F11)’s statutory feature. This facility is not in tally 4.9 to tally 6.3. Both tally 9 and Tally.ERP 9 have these statutory feature , so write yes in the front and then follow there steps from above link tutorial .

You’re all journal entries relating to payment received is correct and just record it in journal voucher of tally.ERP 9.

But , your second journal entries relating to payment to subcontractor should be following way . If you have done any work from sub contractor and paid his contract of labour expenses.
Then, their voucher entries pass in journal voucher of tally.ERP 9

Labour Expense (Total value of expenses paid) Debit 30,000


Service Tax Account Debit 3,090

Name of other party in your case xyz company Credit (After deducting both tds) (30000 + 3090 - 375)

TDS Account Credit amounting 375


Payment of TDS

TDS Account Dr. 375
Bank account Cr. 375


For more reading about Difference between tds and TCS read this tutorial





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