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Unable to find a way to account Tax deducted at source (TDS) by my client.

AnandAnand Member Posts: 2

Hi,

I am from India. I am a freelance consultant for Digital Marketing. I need to know if this feature is available.
Let's say, for example, I raise an invoice for Rs. 100 for my client.
My client deducts 10% towards TDS (Tax Deducted at Source, which is claimed while filing tax returns) and pays me Rs. 90. This is generally the scenario in India.
So when I am recording payment I am currently doing this calculation myself and feeding that I received full payment of Rs. 100.
Is there a way where I can exactly feed the amount that I actually received, Rs. 90 and the Wave system can check if the 10% was deducted and if there is any further amount due to be received after.

Any help would be appreciated. Thanks.

Anand.

Tagged:
edited August 30, 2018 in Wave Features

Comments

  • AlexiaAlexia Member Posts: 3,314 ✭✭✭✭

    Hi, @Anand.

    There are no dedicated features in Wave to handle TDS at this time. I understand that this isn't ideal if you live in a country where this is common, but I do have a workaround to offer.

    Before I do, however, note that I'm not an accountant or tax professional. You are always better off talking with an accounting professional when taxes are concerned. So I'm happy to offer a workaround, but I strongly recommend checking in with an accountant as well.

    Here it is:

    Setting up a TDS asset payment account

    1. Go to your Chart of Accounts, under Accounting
    2. Click on “Add an account”
    3. Choose "Cash and Bank" as the account type
    4. Name that account "TDS"

    Entering income of Rs. 90 into the bank account

    1. On the invoice page, click on the “Record payment” button to the right of the row along which the invoice is listed.
    2. For the Payment Account, select the bank account where the Rs. 90 will be deposited.

    Entering the tax deduction as an “Income” of Rs. 10

    1. On the invoice page, click on the “Record payment” button to the right of the row along which the invoice is listed.
    2. For the Payment Account, select the “TDS" account.

    Following these instructions will make sure your invoice is marked as paid in full and that the balance in your bank account matched reality.

    I hope this helps out!

  • AnandAnand Member Posts: 2

    Hi @Alexia ,
    Thanks a lot for this workaround. Let me try and come back to you.

  • deepakcsinghdeepakcsingh Member Posts: 2

    How to adjust TDS refund and balance amount for that period?

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