Tax Withholding Details

Tax Withholding Details lists every Purchase Invoice or Payment Entry on which TDS (tax deducted at source) was withheld, with the supplier, their PAN, the Tax Withholding Category such as rent or contract payment, the rate, the taxable base and the amount deducted. In Nepal the payer must deduct TDS at the rate for the type of payment, deposit it to IRD by the 25th of the following month and give the supplier a certificate; this report is the working behind both. The deduction posts a credit to TDS Payable on the invoice, so the report total for a month must equal that account's credits. A supplier without a PAN or a wrong category produces a wrong rate here.

TDS = Taxable base x Rate of the Tax Withholding Category (rent 10%, contract 1.5% above Rs 50,000, consultancy 15% if not VAT registered)

1. 01Go to Financial Reports > Tax Withholding Details, or open it from the Taxes workspace.
2. 02Set Company, From Date and To Date for the Nepali month; optionally Party Type Supplier and one Party.
3. 03Read Supplier, PAN, Section (category), Rate, Total Amount and Tax Withheld per row.
4. 04A Rs 1,00,000 bill from a consultant not registered for VAT at 15 percent shows Rs 15,000 withheld.
5. 05Check the Tax Withheld total against the credits to TDS Payable in the General Ledger.
6. 06Export with Menu > Export for the TDS return and print a certificate for each supplier.

Open monthly to prepare the TDS return and the certificates you give suppliers.

A Rs 1,00,000 bill from a consultant not registered for VAT, at 15 percent TDS, shows Rs 15,000 withheld.