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Level 1

IN: How do I record TDS deducted by customer

When I invoice a customer, the customer deducts TDS while making the payment.  So obviously the invoice amount and payment amount does not match.  There are also following considerations:

  • The customer is yet to file returns and hence the amount has not yet been credited to my company's account with Tax department.  Should the amount be shown as outstanding until the customer files the returns and a credit shows up against my company with Tax department?
  • In due course of time the customer files his returns and the TDS amount deducted reflects as credit to my company's account with Tax department
Solved
Best answer September 26, 2019

Best Answers
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QuickBooks Team

IN: How do I record TDS deducted by customer

Hi abhijit.kolhatka,

To record the TDS in Invoice and track when you receive payment, customer needs to be TDS enabled. Please follow below steps to enable the customer for TDS.

Enable TDS for Customers

To enable TDS for customers, while creating a new customer, enter customer's PAN number and check the box TDS Applicable, which is available under Tax info tab. For enabling TDS for already existing customers, follow the steps below:

  1. Select Sales or Invoicing from the left menu.
  2. Select Customers at the top.
  3. Click on the name of the customer for whom you want to enable TDS and click Edit.
  4. In the customer information pop up, click on Tax info tab and enter the PAN number and check the TDS Applicable checkbox.
  5. Click Save.

Once TDS is enabled for a particular customer, while creating the invoice for that customer, you will get option to select TDS section and enter the TDS amount applicable in that invoice.

Hope this helps.

View solution in original post

7 Comments
Highlighted
QuickBooks Team

IN: How do I record TDS deducted by customer

Hi abhijit.kolhatka,

To record the TDS in Invoice and track when you receive payment, customer needs to be TDS enabled. Please follow below steps to enable the customer for TDS.

Enable TDS for Customers

To enable TDS for customers, while creating a new customer, enter customer's PAN number and check the box TDS Applicable, which is available under Tax info tab. For enabling TDS for already existing customers, follow the steps below:

  1. Select Sales or Invoicing from the left menu.
  2. Select Customers at the top.
  3. Click on the name of the customer for whom you want to enable TDS and click Edit.
  4. In the customer information pop up, click on Tax info tab and enter the PAN number and check the TDS Applicable checkbox.
  5. Click Save.

Once TDS is enabled for a particular customer, while creating the invoice for that customer, you will get option to select TDS section and enter the TDS amount applicable in that invoice.

Hope this helps.

View solution in original post

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Level 1

IN: How do I record TDS deducted by customer

I believe the response provided is related to a customer.  This question is related to a supplier.  The supplier has generated an invoice to a customer, the customer has paid the invoice amount less the 10% TDS, and now the sales proceeds amount received doesn't match the invoice amount.  That is where guidance is needed on how it should be handled.

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Level 1

IN: How do I record TDS deducted by customer

If the same is enabled, in the invoice amount due in the words goes wrong. It shows the amount Net of TDS. Whereas it should be before applying the TDS.

 

& also I understand that the amount after TDS is for our Books and should not effect the invoice to be given to customers.

 

Any Idea how to resolve this.

Highlighted
Level 1

IN: How do I record TDS deducted by customer

if the TDS is enabled, in the invoice amount due in the words goes wrong. It shows the amount Net of TDS. Whereas it should be before applying the TDS.

 

& also I understand that the amount after TDS is for our Books and should not effect the invoice to be given to customers.

 

Any Idea how to resolve this.

Highlighted
Moderator

IN: How do I record TDS deducted by customer

Hi Kalyan,

Welcome to QuickBooks Community.

 

Here's everything you need to know about setting up TDS in QuickBooks Online.

 

I hope this helps. 

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Level 6

IN: How do I record TDS deducted by customer

Learned a lot...

 

Thanks

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Level 1

IN: How do I record TDS deducted by customer

I enabled TDS in customer tax info.  But Invoice showing reduces TDS and shows the amount.   

My invoice value 1,00,000, Customer paid me 90,000,  tds 10,000 deducted.

how to record with journal please help me.  Don't Advice me  enable TDS on customer tax info