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author's profile photo Former Member
Former Member

Interest payout amount should show after deducting the Tax amount.

Hi TRM Gurus ,

We are having a Loan transaction (managed from Money market in TRM) for

which we have to pay TDS on interest to the bank. So for this purpose

we had mapped a flow which was entered in the transaction under the other

flows tab. On the interest pay out day the entries passed from TRM now are:

1) Interest payout:

Interest a/c Dr 100

To Bank a/c 100

2 ) TDS deduction on above interest:

Interest a/c Dr 10

To TDS on Interest 10

Bur what we are expecting is, system to pass below entries i.e.

A) Interest Payout: Interest should show after deducting the TDS amount.

Interest A/c Dr 90 (100 Interest -10 TDS)

Cr. Bank A/c 90

B) TDS deduction:

Interest A/c Dr 10

Cr. TDS A/c 10

If the above entries are not possible then pass the One Single entry as mentioned below:

Interest a/c Dr 100

TDS cr` 10

Bank cr 90

Please let me know whether it is possible or not in TRM? If it is possible then please let me know what steps I need to perform inorder to resolve this issue.

Thanks in advance.....

Regards,

Surya

Edited by: pasuri on Feb 6, 2012 8:28 AM

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1 Answer

  • author's profile photo Former Member
    Former Member
    Posted on Feb 07, 2012 at 05:52 AM

    Hi ,

    This is not possible in TRM to combine the entries of TDS & With-holding tax accountig entry. But you can create TDS as a derived flow with the help of which you need not to enter it as"Other Flow".

    Secondly In TRM vendor posting is also not possible therfore you can pass Gross Interest to Interest Payable and from their by passing manual accounting entry (FB01) pass interest to vendor (Vendor must contain with-holding tax data). While passing entry system will automatically deduct With-holding tax and from their you can run the complete cycle of with-holding tax till generation of TDS certificate.

    Regards

    Narinder Pal Verma

    +91-9818882409

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