Duties and Taxes

Duties and Taxes is the group that holds every tax the company collects or withholds on the government's behalf: VAT charged to customers and TDS deducted from suppliers and staff. The company is only a conduit, so these amounts are liabilities until they are remitted to the IRD within the set deadlines, VAT within 25 days of the Nepali month end and TDS by the 25th of the following month. The group posts nothing; it totals VAT Payable and TDS Payable. In the demo books it shows Rs 4,160, the VAT collected on sales less what has already been paid. A tax balance that keeps growing is the clearest warning that returns are being missed and penalties are building.

Duties and Taxes = VAT Payable + TDS Payable

1. 01Go to Accounts Setup > Chart of Accounts, expand Current Liabilities, then Duties and Taxes.
2. 02Open VAT Payable or TDS Payable to read the ledger.
3. 03Open Financial Reports > Balance Sheet and read the group total for the month end.
4. 04Before the 25th, confirm the total matches the VAT Return and the TDS return being filed.
5. 05After paying the IRD, check the group falls to zero for that month.

Do not post here. Sales Invoices post to VAT Payable; supplier payments with withholding post to TDS Payable.

Duties and Taxes shows Rs 4,160 in the demo books: VAT collected Rs 8,320 less Rs 4,160 already remitted.