TDS Payable

TDS Payable is the liability ledger under Duties and Taxes that collects every amount withheld from suppliers, landlords, consultants and contractors until it is deposited with the IRD. Each Purchase Invoice with a Tax Withholding Category credits it; the deposit, usually one Journal Entry per month, debits it against the bank. The balance at any time is tax you are holding on the IRD's behalf, and the IRD expects it within 25 days of the end of the Nepali month in which it was withheld, filed through the TDS return on the portal with each payee's PAN. A balance that never clears means withholdings were taken but not deposited, which carries interest and penalties.

TDS Payable balance = Sum of TDS withheld on purchase invoices - Sum of TDS deposited with the IRD.

1. 01Open Financial Reports > TDS Computation Summary for the Nepali month to list every withholding by supplier and PAN.
2. 02Open TDS Payable from Accounts Setup > Chart of Accounts and click View Ledger to agree the total.
3. 03File the TDS return on the IRD portal with each payee's PAN, amount and rate, within 25 days of month end.
4. 04Pay the total through the bank or the portal's payment gateway.
5. 05Go to Invoicing > Journal Entry > New, debit TDS Payable and credit the bank for the amount deposited.
6. 06Submit. The entry above posts and the ledger balance returns to zero for that month.

Cleared by a Journal Entry to Bank when you deposit, usually within 25 days of month end.

Rs 5,000 withheld from the landlord sits here until deposited.