Vendor TDS

Vendor TDS in Zoho ERP is the tax deducted from payments you make to vendors. When you record a vendor bill or payment, Zoho ERP automatically calculates the applicable TDS based on the selected TDS section and rate. Instead of paying the full amount to the vendor, you pay the net amount after TDS deduction, while the deducted tax is recorded as a TDS liability payable to the government. This liability remains outstanding until it is remitted through a TDS challan.

TDS Liabilities

TDS Liabilities are the tax amounts you have deducted from payments but haven’t yet paid to the government. In Zoho ERP, you can view your TDS liabilities and record challans to remit the tax to the government.

Enable TDS Liabilities

Before generating the TDS liabilities, you need to enable the feature. Here’s how:

• Go to Settings.
• Navigate to Taxes and Compliance and select Direct Taxes.
• Under Income TDS Settings, check the Enable TDS Liabilities Report option.
• Select the month from which you want to generate the TDS liabilities in the Generate From field.
• Click Save.

Once enabled, Zoho ERP will start generating TDS liabilities from the selected month and track all future TDS deductions.

View TDS Liabilities

After enabling the feature, the TDS liabilities will be generated starting from the month you selected. To view the TDS liabilities:

• Go to Accounting on the left sidebar.
• Click the Taxes & Filing dropdown in the module bar and select TDS Liabilities under Vendor TDS.

The TDS liabilities will be listed starting from the month you selected. Select a liability to view all the transactions from which TDS was deducted for that month.

TDS Challans

TDS Challans are used to remit the deducted TDS to the government. In Zoho ERP, you can record challans, associate unused challans with a liability, and view the challans you’ve created.

Record Challan

If you’ve paid the TDS to the authorities for a liability, you can record the payment as a challan in Zoho ERP. Here’s how:

• Go to Accounting on the left sidebar.
• Click the Taxes & Filing dropdown in the module bar and select TDS Liabilities under Vendor TDS.
• Select a liability.
• Click Record Challan.
• Enter the Amount.
• You can add Penalty for any delay in TDS Return filing.
• You can add Interest if you have failed to deduct TDS for this liability, or if you have not paid the full or partial tax to the government after deduction.
• Enter the Challan Number and BSR Code (branch code), and select the Payment Date and Challan Date.
• Select the Paid Through account.
• Select Auto-allocate payments to subsequent liabilities to automatically associate the payment amount from this challan with all the listed TDS liabilities for the selected month.

• Select a Location.
• Click Save.

The challan will be recorded.

Associate Challan

You can associate unused challans with a liability. These are challans with amounts that have not been fully allocated. Here’s how:

• Go to Accounting on the left sidebar.
• Click the Taxes & Filing dropdown in the module bar and select TDS Liabilities under Vendor TDS.
• Select a liability.
• Select the transactions that you want to associate with the liability.
• Click Associate Challan in the top right corner.
• The unused challans will be listed in the Associate Challans pop-up.
• Click Associate next to a challan to associate it to the selected liabilities.

The unused challans will be associated with the selected liability and allocated to the outstanding TDS amount.

View Challans

To view the challans that you’ve created:

• Go to Accounting on the left sidebar.
• Click the Taxes & Filing dropdown in the module bar and select TDS Challans under Vendor TDS.

You can view all your challans here.