Calculation of TDS

navuser1

Dear all,

I have posted an Purchase Order where TDS is applicable. But by mistake I did'nt calculate TDS in that purchase order and post the same.

Now how I am going to assign TDS value in that purchase order?

Kindly reply.

ssingla

Reverse thru credit memo and post the correct transaction.

navuser1

ssingla wrote:

Reverse thru credit memo and post the correct transaction.

Thanks for the reply.. Actually after purchasing the items (thru purchase order posting), I have sold the items (with item tracking) thru sales order.
In that case how I pass a credit memo?

Please also suggest me that if I do the Apply-to-doc functionality from purchase journal, will it be a correct step?

ssingla

TDS on item purchase ??? Are you sure.

navuser1

ssingla wrote:

TDS on item purchase ??? Are you sure.

Actaully the item is MS License (OEM) against which Service Tax is charged by the vendor. Now our client is in a practice to deduct TDS while purchasing such type of lincense from the vendor.

ssingla

TDS is applicable on the transaction because it is purchase transaction and not service transaction. The fact is that the Government of India has levied a service tax on purchase/sale of customized software.

navuser1

Hi All,
One of my clients faced a problem-- In a purchase invoice (purchase of a customised software on which Service Tax & TDS is applicable) user had calculated service tax (as applicable) but forget to calculate TDS . The purchase invoice was posted and thereafter the purchased items are sold out thru sales invoice.

Then what is the solutions?