TDS On Nil Rated Entry

By | June 28, 2024

As we all are aware of TDS in Sage 300 ERP. Tax Deducted at Source (TDS) is a method mandated by the Indian government for collecting taxes directly from the source of income. It entails the deduction of a specified tax percentage by the payer while making payments to the recipient, with this deducted amount subsequently remitted to the government. TDS is applicable across a wide array of income categories, including salaries, interest on fixed deposits, rent, commissions, and others.

New Stuff: Validation of E Invoice optional fields on OE Credit\Debit note screen

Previously, in Sage 300 ERP, transactions with nil-rated TDS were not included in remittances. Now, transactions with nil-rated TDS are considered for remittance. These entries will be visible on the Create Remittance screen and in the TDS Deduction and Remittance Report. However, the system won’t permit posting such invoices on payment entry screen and Remittance Entry screen as they have zero TDS amount. To post such transactions, users need to attach or apply an invoice along with them.

Let’s understand the correct process of remittance of zero-amount invoices. The below image is of a TDS transaction with zero amount.

Fig 1.1 AP Invoice with zero percent TDS

The below image is of create remittance screen where the user has posted the nil-rated invoice.

Fig. 1.2 Remittance is created for nil-rated TDS Invoice

Initially, the system was not allowed to post or void such types of invoices by throwing the below errors on the Remittance Entry screen.

Fig.1.3 Error message on posting single nil rated invoice on Remittance Entry screen

Fig. 1.4 Error message on voiding single nil rated invoice on Remittance Entry screen

The above problem has been solved in the TDS addon.

Below is an example of TDS Transactions with zero amount(nil-rated), and another is with TDS amount.

Fig. 1.5 Two AP invoices one is of nil rated and another is of TDS Amount

Now, both invoices can be remitted from the create remittance screen. As shown in the below screenshot.

Fig. 1.6 Creating Remittance for both the invoice

Fig. 1.7 Posting of Nill-rated Invoice with No nil-rated Invoice on the Remittance entry screen

Fig. 1.8 Posting of Nil-rated Invoice from payment entry screen

This is how users can process nil-rated TDS invoice/s and check the same transactions in the Deduction and Remittance Report.

Fig. 1.9 Remittance Report of Nill-rated Invoice from Deduction and Remittance Report

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