Booking Rent expense with TDS

In our daily accounting, we do lot of accrual expenses i.e.rent, salary etc..  How do we do it in AccountingGuru?  AccountingGuru made it so easy.  Let us  see how we do a rent expense in AccountingGuru.

Go to Accounting -> Expenses -> New Accrual Expense

The following screen appears when you do the above

Just feed in the following

1. Date
2. Due date
3. Comments (Mandatory)
4. Expense type (i.e.Rent)
5. Amount
6. To -> whom you are paying

Click on “Create”

When it is created successfully, it says “Created Accrual expense successfully”

When we make a payment of Rent, salary etc.. we deduct 10% of TDS from the actual rent and pay the balance to the Owner or Employee.  In this case,  Rent is Rs.10000.00 and the TDS amount would be 10% of the rent is Rs.1000.00.  Let us see how do we do it in AccountingGuru.

Click on “New Tds Payable” 

When you click on “New Tds Payable” the below screen appears

1. Select the date
2. Select the Recipient (Company or Non-company)
3. Section

• Below are the few important TDS section codes for your easy set up of TDS sections

Section	Nature of Payment	Code
192	Payment to Govt. Employees other than Union Government Employees	9	2	A
192	Payment of Employees other that Govt.Employees	9	2	B
193	Interest on Securities	1	9	3
194	Dividend	1	9	4
194A	Interest other than interest on securities	9	4	A
194C	Payment of contractors and sub-contractors	9	4	C
194EE	Payments in respect of Deposits under National Savings Scheme	4	E	E
194F	Payments on account of Re-purchase of Units by Mutual Funds or UTI	9	4	F
194H	Commission on Brokerage	9	4	H
194I	Rent	9	4	I
194J	Fees for Professional or Technical Services	9	4	J
194LA	Payment of Compensation on acquisition of certain immovable property	9	4	L
195	Other sums payable to a non-resident	1	9	5

To create a TDS section Click on “Create New TDS Section” as shown below

When you click on “Create New TDS Section”, a pop-up window opens.  Feed in the Section as shown below and click on “Create”

New TDS section is created.

      Ø      Type in your comments and ref no.

Ø      Click on the check box to select it.

Ø      Feed in the %.  TDS is 10%.  When you feed in the percentage, it automatically calculates the actual amount of TDS

Ø Click on “Approve”

On successful creation, the follow screen appears and says “TDS payable created successfully”

Click on  “ Back to Accrual Expenses ”

The below screen appears

When you want to make the payment, click on “Make Payment”

The below screen appears.

      Ø      Select the date

Ø      Payment Mode

Ø      Transaction number if you have anything

Ø      Comments i.e, cheque number, bank name etc…

Ø      Confirm the check box is selected

Ø      Click on “Create”

On Successful creation, below screen appears and says “ Payment created successfully”

If there is any modification to be done, Click on “ Modify ”.  After doing the changes click on “ Update ”

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