tax deducted at source ( TDS )
diptiman
Member Posts: 3
when i am raising an invoice ,clients is deducting some tax at source and when i record the receipt of tax i am not able to map that to the particular client ledger
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I am from india , and on invoice payment customer is supposed to deduct tax and send us the proof how do we account for that , as in journal entry there is no option to mark the reciept against client ledger please help
Hi @diptiman , thanks for your message! I'm sorry to hear you're having some trouble with recording your taxes here. Would you be able to walk through the steps you've taken so far? Can you also clarify what the customer steps are?
In general, if you need a customer associated with an income/expense, you can head to Accounting > Transactions > locate/create the transaction, and click 'Add customer' in the transaction details editor.
As well, I merged your other post into this one, as it is the more relevant thread (Sales & Invoicing Technical Support)!
Hello @CallieP, I have a similar issue and I will explain this in detail. I have a company A and I provide some service to company B. So, when I finished my work, I created a customer called B and prepare an invoice for them of $100. Now, in our country (Nepal), for any services charge, some % should be deducted while paying the vendor. This deduction % amount depends on the nature of service and the type of vendor. So, since my company A is a vendor to B, while paying my invoice that I sent to them, company B deduct lets say 2% i.e. $2 from my fees and paid me $98 dollars. Now, they will deposit that $2 at Tax Office in my company's Tax Payers No. This is all good.
But now when I am back to Wave and record that transaction of $98, wave thinks that the company B still hasn't paid me $2 - which is in a way correct. But, that $2 is not owed to me by company B, infact it is TDS receivable by my company.
Thus to make wave understand this logic, I created an TDS receivable accounts in my Assest Section of Chart of Account and added a Journal Transaction where I debited by TDS receivable accounts by $2 and credited Accounts Payable also by $2. When I do this, the reports are correct, the trail balance report doesn't show company B owes me money and now it is showing that $2 in TDS receivable account.
But still the main wave dashboard shows that company B owne me $2, which is kind of annoying.
How do we go about this situation.
Hey @sagarprasai! This is a fantastic question. I'm thinking that the easiest way within Wave to show that the invoice has been paid in full would be to navigate to that invoice, and create a negative line item for the amount remaining (in your case, $2), in order to close the invoice out and show it as paid in full. That would also clear that balance from your Accounts Receivable from Company B on your dashboard