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support66
Level 1
posted
‎February 03, 2022 07:40 PM
last updated ‎February 03, 2022 7:40 PM

Sec 194J - wrong calculations since 2021

In quickbooks, 194 J TDS rate is calculating with wrong percentage. This issue is there for last 1.5 years. I am surprised why quickbooks has not yet fixed it.

As per amended law, 194J has 2 rates, 10% for professional services, 2% for technical services. There is no option in quickbooks to modify the rate or create new tds rate. Please don’t subscribe to QB, if contractors payment is key part of your operations till issue is fixed.

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1 Comment 1
MichelleBh
Moderator
Moderator
‎February 04, 2022 04:47 AM

Sec 194J - wrong calculations since 2021

We have a workaround about the 194J two rates in QuickBooks, @support66. Happy to share the detailed steps with you. 

 

I know how important it is to have an exact tax calculation when doing business. The computation is fixed in QuickBooks Online by following the steps below.

 

To start, I'd recommend creating another custom TDS rate to correct the computation. Do the following: 

 

  1. Go to the Taxes tab and click Add tax. 
  2. Choose Custom tax. 
  3. Enter a Tax Name, Description, Tax agency name, and Registration number. 
  4. Pick the Start of the current tax period, Filing frequency, and Reporting method in the box.
  5. Select the type of transactions and enter the rate. 
  6. Click Save. 

 

 

After that, you have an option to create a Group rate so you can apply this tax in your transactions. Follow the instructions below: 

 

  1. Go back to the Add tax page and choose Group rate. 
  2. Type a Group Name and Description in the box. 
  3. Select the two TDS rates in the Tax rate drop-down one at a time. 
  4. Pick appropriate Applicable in the box. 
  5. Click Save. 

 

At invoicing time, select the Group rate in the Taxes drop-down. This way, the two rates will apply in the transactions. 

 

For more information, see this link: Create custom tax agency.

 

To know more about how TDS is calculated and run reports in QuickBooks, check out these articles: 

 

 

Leave a reply in the comments section again if you have a follow-up or other questions. I'm still here to help you more. Take care, support66.

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