IN: I make a payment to a vendor after deducting an amount towards TDS. After I pay the TDS, how do I record this TDS payment in Quickbooks?

Hi x07vinay,

To track the TDS payable in QuickBooks, we need to enable the supplier for TDS and when you create an expense or bills, you can click on 'Calculate TDS'. QuickBooks will calculate the TDS on the basis of TDS entity and section. Please follow below steps to enable the supplier for TDS.

To enable TDS for suppliers, while creating a new supplier, enter the PAN number of the supplier and check the box TDS Applicable.  Once you click on TDS Applicable, you will have option to select Entity Type and default TDS section applicable for the supplier. Please select relevant options. TDS will be calculated for the supplier according to the threshold prescribed under the selected section during entry of a Bill or Expense. However, if you want to override threshold and enter the TDS amount manually, please tick the check box, which reads Override Calculation Threshold.

For enabling TDS for already existing supplier, follow the steps below:

1. Select Expenses from the left menu.
2. Select Vendors/Suppliers at the top.
3. ​Click on the supplier name for whom you want to enable TDS and click Edit.
4. In the supplier information pop up, enter the PAN number and check the TDS Applicable checkbox.
5. Once TDS Applicable check box is checked you will have option to select Entity Type and default TDS section applicable for the supplier. Please select relevant options. TDS will be calculated for the supplier according to the threshold prescribed under the selected section during entry of a Bill or Expense. However, if you want to override threshold and enter the TDS amount manually, please tick the check box, which reads Override Calculation Threshold.
6. Click Save.

Once TDS is enabled for a particular supplier, while entering the bill for that supplier, you will get option to automatically calculate TDS based on the selected section.

*Note : TDS Calculation is possible only for  Bills & Expense transactions dated on or after 1st of April 2014. For transactions prior to 1st April 2014 please calculate the TDS manually and enter.

'TDS Payable' payment can be done by entering an 'Expense' voucher and select the "TDS Payable' Account in account column.

Hope this helps.