TDS Computation Summary

Overview

TDS Computation Summary – Business Explanation

The TDS Computation Summary report provides a consolidated view of Tax Deducted at Source (TDS) calculated on vendor transactions. It helps finance and compliance teams understand how much tax has been deducted, from whom, under which TDS sections, and for what period. This report is essential for ensuring statutory compliance, accurate vendor settlements, and correct tax reporting.

---

1. What Business Information This Report Provides

The report summarizes: - Total taxable amounts paid or payable to vendors
- Applicable TDS sections and rates - TDS amount deducted on each transaction
- Net payable amounts after TDS deduction
- Vendor-wise and invoice-wise TDS breakup

In simple terms, it answers:

“How much TDS have we deducted, from which vendors, and under which tax rules?”

---

2. When and Why to Use This Report

You should use this report: - At month-end or quarter-end for TDS review and reconciliation
- Before depositing TDS with tax authorities
- While preparing TDS returns and certificates
- During audits or internal compliance checks
- To resolve vendor queries related to TDS deductions

Why it matters: - Ensures statutory compliance - Prevents under- or over-deduction of TDS - Improves vendor trust and transparency - Supports accurate cash flow planning

---

3. Key Columns and Their Business Meaning

Typical columns in the report include:

• Supplier / Vendor
  Identifies from whom TDS has been deducted. Useful for vendor-level tracking and reconciliation.

• Purchase Invoice
  Links the TDS amount to a specific bill, ensuring traceability.

• Posting Date / Invoice Date
  Helps determine the correct tax period for compliance and reporting.

• TDS Section
  Indicates the legal section under which TDS is deducted (e.g., professional fees, contractor payments). Important for statutory classification.

• TDS Rate (%)
  Shows the percentage applied as per tax rules or vendor setup.

• Taxable Amount
  The base amount on which TDS is calculated.

• TDS Amount
  The actual tax deducted from the vendor payment.

• Net Payable Amount
  What the business owes the vendor after deducting TDS.

---

4. Available Filters and Their Business Purpose

Common filters include:

• Company
  Use when managing multiple legal entities.

• Date Range (From / To Date)
  To review TDS for a specific month, quarter, or financial year.

• Supplier
  To analyze TDS deductions for a particular vendor, often useful for dispute resolution.

• TDS Section
  Helps in section-wise compliance review and return preparation.

• Purchase Invoice
  Useful for invoice-level verification and audits.

---

5. How to Interpret the Results for Business Decisions

• High TDS amounts for a vendor
  May indicate high-value transactions or frequent payments – useful for vendor negotiations and compliance monitoring.

• Unexpected TDS rates or sections
  Can highlight setup issues or incorrect classification that need correction.

• Mismatch between taxable amount and TDS deducted
  Signals potential compliance risk and should be reviewed immediately.

• Period-wise totals
  Help finance teams plan TDS payments and cash outflows.

---

6. Common Use Cases and Scenarios

• Monthly TDS review before payment to the government
• Quarterly TDS return preparation
• Vendor reconciliation and TDS certificate issuance
• Audit and compliance verification
• Management reporting on statutory liabilities
• Resolving vendor disputes related to TDS deductions

---

Summary

The TDS Computation Summary is a critical compliance and control report in Dafater. It provides clear visibility into how TDS is calculated and deducted, supports accurate statutory reporting, and helps businesses maintain transparency with vendors while avoiding tax-related risks.

← Back to Accounts

Report Information

• Module: Accounts
• Related DocType: Purchase Invoice
• Report Type: Script Report
• Standard: Yes