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TDS entry in tally with gst

TDS Entry In Tally With GST (2023)

In order to track the supply of goods and/or services, the new GST tax deducted at the source system mandates that the recipient of the supply withholds a small portion of the money that is paid to the supplier and deposits it with the government.

In this article, we will show the TDS entry in tally with GST. 

Without any delay, let’s get started.

How can I book TDS on GST in Tally?

On the goods and services received, the government or a government agency may deduct TDS. The deductee, who supplied the goods or services, may claim the TDS amount as a tax credit. To change the TDS amount, you can record a journal voucher.

  1. First visit the Tally Gateway → Accounting Vouchers → F7: Journal.
  2. Click J to adjust your stats.
  3. Select the following options in the Stat Adjustment Details screen:
How can I book TDS on GST in Tally
  1. To save and go back to the journal voucher, press Enter.
  2. Enter the amount that can be claimed as a credit after debiting the integrated tax, central tax, state tax, UT tax, and CESS ledger.
  3. Credit the ledger sectioned off as Current Assets
  4. To accept the journal voucher, press Ctrl+A.

What is entry of TDS in tally?

You can make an accounting voucher for the cost of the inventory expense along with the appropriate TDS.

  • Tally’s website home page → Vouchers → press F9 (Purchase)
  • Alternatively, press Alt+G (Go To) → Create Voucher → press F9 (Purchase).
  • In order to pick the necessary voucher mode, press Ctrl+H (Change Mode) (Item Invoice, in this case).
  • Enter the date and the supplier invoice number.
  • Choose the Party Account name.
  • Select the Purchase ledger.
  • As usual, press Alt+C to instantly create a master. Alternately, you can press Alt+G (Go To) → Create Master → type or select Stock Items → press Enter.
  • Select the stock item and input the rate and quantity. The price is automatically displayed.
  • Choose the TDS ledger. The price is automatically displayed.
  • On the Bill-wise Details screen, complete the necessary information, and to save it, press Ctrl+A.

What is the journal entry for TDS?

The following journal entries for TDS should be made in your business’s books of accounts.

Audit Fee A/c Drxxx
CGST A/c Drxxx
SGST A/c Drxxx
To TDS on Professional Charges A/cxxx
To Vendor A/cxxx
TDS on Professional Charges – 194j

TDS on Professional Charges (194J) A/c Drxxx
To Bank A/cxxx
TDS Payment Entry

TDS on Professional Charges A/c DrXXX
Interest A/c Dr  XXX
To Bank A/cXXX
Interest on Late Payment of TDS

Commission Charges A/c DrXXX
To TDS on Commission A/cXXX
To Vendor A/cXXX
TDS on Commission Charges – 194H

Vendor A/c Drxxx
To Bank A/cxxx
Payment to Vendor Entry

TDS on Commission A/c Drxxx
To Bank A/cxxx
TDS Payment Entry

What is TDS receiveable entry with example?

The total amount invoiced to the parties is passed

ABC Pvt LTD A/c 50,000
  To Revenue A/c50,000
Total Amount Invoiced

The second entry is passed to book TDS accounts receivable when the net amount is received in the bank.

Receipt Entry

Bank A/c45,000
      To ABC Pvt Ltd45,000
TDS Receivable

Journal Entry

TDS Receivable A/c5,000
  To ABC Pvt Ltd A/c5,000
TDS Receivable

What is TDS Payable entry with example?

TDS is booked with the amount paid to the payee

Contract Expenses A/c 1,00,000
    To Mr. A A/c90,000
    To TDS Payable A/c (10%)10,000
TDS Payable

The second input occurs during payment of the amount to the payee

Mr. A A/c90,000
      To Bank A/c90,000
TDS Payment

The third entry where TDS is deducted is paid/deposited to the IT department bank account

TDS Payable A/c 10,000
      To Bank A/c10,000
TDS Payable/Deposited

What is GST payable journal entry in tally?

Intrastate transactions

Purchase A/c2,00,000
Input CGST A/c (18%)9,000
Input SGST (18%)9,000
To Creditors A/c2,18,000
GST Payable- Intrastate transactions

Interstate transactions

Purchase A/c2,00,000
Input IGST A/c (18%)18,000
To Creditors A/c2,18,000
GST Payable – Interstate transactions

Debtors A/c1,06,200
To Sales A/c90,000
To Output CGSTA/c (18%)8100
To Output SGST A/c (18%)8100
GST Payable

Debtors A/c79,000
To Sales A/c70,000
To Output IGST A/c (18%)9,000
GST Payable

What is the TDS provision in GST?

TDS stands for Tax Deducted at Source (TDS). According to Section 51, this provision is intended for the government, government undertakings, and other specified entities making contractual payments where the total value of such delivery under the contract exceeds Rs. 2.5 lakhs to suppliers. 

The relevant Government/authority shall deduct 2% of the total payment made (1% under each Act and 2% in the case of IGST) and send it to the relevant GST account when making any payments under such contracts.

Where is TDS shown in the Tally? 

1. Open the Tally Gateway → F11: Features → Statutory & Taxation.

2. In the Company Operations Alteration page, select Enable Tax Deducted at Source (TDS) and set the value to Yes.

In which type entry is done for TDS calculation?

The following document types can be used for TDS calculations: Purchase order.

  • Purchase Order
  • Purchase Invoice
  • General Journal
  • Purchase Journal

Frequently Asked Questions(FAQs):-

1. Is TDS expense or liability?

TDS is always recorded as a liability on the balance sheet because it is the amount that we used to collect for the government from other entities as part of our business operations.

2. Is TDS paid an expense?

The tax that was withheld at source from the recipient of such income may be regarded as the assessor’s cost for the year, making it a cost that the assessor may deduct as a proper business expense.

3. What are the two types of TDS?

TDS certificates come in two different types: Form 16 and Form 16A.

According to Section 203 of the Income Tax Act, a certificate indicating the sum that has been withdrawn (deducted) as tax must be given to the deductee. The deductor is required to give this form to the deductee.

Salaried employers must provide Form 16 to salaried employees, which must include various details such as the amount deducted as TDS, the computation of tax, the deduction of tax, the rate of tax, and the payment of TDS. This requirement applies to people in the salaried class.

For individuals who fall under the non-salaried category, the deductor provides the deductee with Form 16A, which includes all the details on tax computation, TDS deduction, and payments. TDS certificates must be provided within 15 days of the day the return was filed.


We hope now you can record TDS entries in Tally with GST. If you still have any other questions, call or WhatsApp our team. For further information on GST, visit InstaFiling. We are happy to help you.

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