EWT adjustment advance payment

[Former Member]

Hello All,

The Scenario is like this. Advance payment made Rs.10000/- through special GL TDS deducted is say Rs.225/-on advance Rs.10000/-. Invoice Recd Rs.20000/-. So how should I enter this invoice as I have to adjust TDS already deducted Rs.225/- on advance. If I use T Code F-43 it deducts the TDS on Full Invoice value on Rs.20000/- TDS say Rs.450, whereas I want that TDS should be deducted considering Advance TDS (450-225) Rs.225 only.

appriciated quick response.

thanks,

aruna.

[Former Member · Accepted solution]

Hello aruna,

You will have to deduct the TDS from vendor either you made the advance payment or received the invoice from party. You will have to decide which method you adopt for vendor. If you follow the TDS deduction at the time of payment then at the time of payment i.e. down payment the TDS deducted and when you received the bill the amount booked as full and made the balance payment. At the time of payment the TDS deducted the again. You can clear the vendor after that.

You can book the invoice for full value ie.,Rs.20000/-.When you do a TDS run for the invoice through T.code J1in, there is an option to set off the TDS deducted earlier by selecting the invoice and adjusting the amount on which TDS is to be deducted.

hope this will help you.

regards,

shashikanth.

[Former Member]

Hi,

As per income tax act, tds should be dedecut at the time of payment or at the time of invoice which ever is earlier.

In your case first you made down payment, so that you should deduct tds on down payment.

Next you will get invoice, while booking invoice, system will pop up the witholding tax tab there you should give base amount (i.e invoice amount less down payment made, 200000-100000). Then it will calculate tds on invoice is 10000.

I think this one will solve your query. Let me know if you need further information.

Best Regards,

JAGAN VETCHA

[former_member424251]

Hello Jagan,

Is there any way wherein we can customize the system in such a way, that it will automatically deduct the tax on (Invoice - Down Payment) amount?

Thanks,

Reshma

[former_member424251]

Thanks, it worked correctly without giving base amount manually.

Rgds,

Reshma

[Former Member]

Hi Reshma,

Can you please let me know what you did to get the system determine automatically instead of giving the amount manually.

Your quick response would be appreciated.

Regards,

Purna.