India TDS and TCS Ledgers

TDS payable (deducted by us on payments)

When KMMV pays a vendor and deducts tax at source, record it against the relevant section ledger:

• TDS Payable - 194C (Contractors)
• TDS Payable - 194J (Professional / Technical fees)
• TDS Payable - 194I (Rent)
• TDS Payable - 194H (Commission / Brokerage)
• TDS Payable - 192 (Salary)
• TDS Payable - 194Q (Purchase of Goods)

TDS receivable (deducted by customers on our income)

• TDS Receivable (on Income)

TCS

• TCS Payable - 206C — tax we collect on notified sales.
• TCS Receivable — tax vendors collect from us, claimable.

Step-by-step: record a TDS deduction on a bill

1. Create the vendor bill for the gross amount.
2. Add a line crediting the correct TDS Payable ledger for the tax withheld.
3. Pay the vendor the net amount.
4. Deposit the withheld TDS to the government and clear the TDS Payable ledger.