Release Date

16 June 2021

HO Version

12.4.5

POS Version

2.4.0

Web Database Compatibility Version

1.16

Features & Enhancements

04

Bug Fixes

01

Navigation

1

GIN-I-3496

Ginesys provides for Statutory compliance of deduction of TDS on purchase of goods after crossing relevant threshold limit

Module:

Finance  -  Setup  - TDS  -  TDS Section

Procurement - Setup - Vendors - Vendor

Sales & Distribution - Setup - Customers - Customer

Finance - Setup - Chart of Accounts - Sub Ledger - Others

Finance - Setup - Chart of Accounts - Sub Ledger - Employees

Procurement - Operations - Invoicing - Purchase Invoice

Enhancement Summary:

TDS deduction on Services was formerly allowed in Ginesys, now with new statutory changes being put in place through TDS Section 194Q - deduction of TDS on purchase of goods worth more than fifty lakh rupees (₹ 50,00,000) has been enabled. Please note the following major points as encapsulated in the section194Q -

• Buyer is responsible for the deduction.

• The deduction is applicable for the purchase of any goods of value INR 50 Lakhs or more in any financial year. Note that the total purchase value of the transactions throughout the year should be INR 50 Lakhs or more for the deduction to be applicable.

• Deduction is of 0.1 per cent. of such sum exceeding fifty lakh rupees, as income tax.

• Deduction has to be made at the time of providing the money to the seller through credit of such sum to the account of the seller or at the time of payment thereof by any mode, whichever is earlier.

Categorization of TDS Section

• A new Type field has been added to differentiate Goods type and Service type of TDS Section master.

• All the existing sections would be converted into Service type.

• Note: One time master creation for section 194Q has to be done manually with tagging of all eligible TDS source and their respective TDS rate.

Reflection in Vendor Master

• Under TDS Information block, a new column has been introduced for TDS Type in Vendor, Customer, Employee and Other sub ledger master.

• The TDS Name can be quickly chosen by the new TDS Type column in the drop-down list.

• Note: One time effort is to be applied to mark the eligible vendors for TDS Applicable and specify the Exception Limit for the year. 

  • Check: Sum of Invoice value already created during this year, needs to deducted from maximum exception limit, for respective vendors. 

  • Ex: If total value of Invoice raised till 30th June is 20 Lacs for a given vendor, then exception limit for that Vendor should be 30Lacs i.e.(50L - 20L). From next year Limit will be on full value i.e. 50Lacs.

Changes in Purchase Invoice

Introduction of the TDS Information block

• A new block name as TDS Information is introduced under General Information in Purchase Invoice

• The TDS Information block contains four fields as ‘TDS Applicable', ‘TDS Source’, ‘TDS Name’, 'TDS Section’.

• All the above field values populate on a selection of Vendor Name.

• TDS Name field displays only non-extinct Goods type of TDS, from vendor master if tagged, otherwise from TDS section definition.

Derivation of TDS Rate

• TDS Rate gets derived based Vendor Amount i.e. sum of TDS Applicable amount from Purchase Invoice, TDS Journal and TDS Reversal entries, w.r.t. the TDS name

• TDS Rate gets fetched from two places - Vendor master and TDS Section definition.

  • If Vendor Amount + TDS Applicable Amount of Invoice <= Maximum Limit specified in Vendor master, then TDS Rate gets fetched from the Vendor master Exception details.

  • Else, gets populated from the TDS Section definition.

• Example: If Vendor Amount <= Exception Limit 50L, then TDS @ 0%. Else if Vendor Amount > 50L, then TDS @ 0.1%. 

Creation of TDS Journal

• If Purchase Invoice is TDS Applicable then during Release from the list view and edit mode -

  • If TDS entry is not found then creates TDS Journal entry. The TDS Amount gets auto-adjusted with the Invoice Amount.

  • If TDS entry is found then opens prompt to adjust the TDS Amount with the Invoice Amount.

• Note:

  • TDS Applicable Purchase Invoice cannot be released without adjusting the TDS Journal amount.

Reflection in Charge views

• Charge Details window opened from the Charge Summary block contains a new field named 'Include in TDS'. This field contains a dropdown list having two values - Yes/No.

  • By default, the value populates from Purchase Term.

  • The field remains editable for change in the Purchase Invoice document.

Reflection in Panel Information

• In ‘Item Summary' section, TDS related information has been added - ‘TDS Applicable Amount’, ‘TDS Charge Amount’, ‘TDS Net Amount’, ‘TDS Rate’, 'TDS Amount’.

Reflection in List View

• New columns have been added to the list view for - 'TDS Applicable', 'TDS Amount', 'TDS Source', 'TDS Name' and 'TDS Section'.

SOME ASSUMPTIONS / EXCEPTIONS

• Organization Turnover limit for 10 Cr. has to be self validated, i.e. if not applicable, then TDS configuration should not be done. If configured then will always be charged.

• Exception Limit is not validated on advance payment from AP Voucher. Manual option available for population of Exception limit, irrespective of limit check.

• Un-registered vendor needs to be handled by self definition. Suggested to create separate TDS Source with applicable TDS rate applied.

• Purchase Invoice in which exception limit is crossed with partial value, TDS will be charged on full amount i.e. adjustment of differential value is not done.

• Purchase Invoice made against advance payment, both advance and current bill will be counted for exception limit, coz, adjustment of advance is done after saving of invoice.

• Both Inventory and Non-Inventory items are considered under this taxation, as no separation mentioned in rule.

• TDS Journal or Reversal created against Purchase Return / Debit Note / Credit Note are not automatically adjusted. These needs to be manually done.

• From Seller side view, if TDS is deducted by buyer, then the seller needs to account for advance tax paid. This entry he needs to do while preparing AR and will remain a manual Credit Journal document.

To know more, click here for FAQs

2

105643

GIN-1566-1

105643 TDS Information has been added in Purchase Invoice Document Report with TDS applicability in Purchase Invoice

Module:

Procurement - Documents - #Purchase Invoice#

Enhancement Summary:

TDS Information has been added in Purchase Invoice Document Report. This information would be visible if the particular Purchase Invoice is TDS applicable.

3

105644

GIN-1566-2

105644 TDS Applicable Amount and TDS Amount is now visible for Purchase Invoice Register Report with TDS applicability in Purchase Invoice

Module:

Procurement - Register - #Purchase Invoice Register#

Enhancement Summary:

TDS Applicable Amount and TDS Amount is now visible for Purchase Invoice Register Report. This information would be visible if the particular Purchase Invoice is TDS applicable.

4

105645

GIN-1566-3

105645 TDS information has been added in Purchase Invoice Cubes with TDS Applicability in Purchase Invoice

Module:

Ginesys Web Report

Enhancement Summary:

Purchase Invoice Cubes are available in Procurement > Cube > Purchase Invoice Analysis & Procurement > Cube > Purchase Invoice Summary Analysis respectively. TDS information has been added in Purchase Invoice Cubes. This information would be visible if the particular Purchase Invoice is TDS applicable.

1

2482

 N.A.

2482 TDS Amount is not being rounded off to the upper value

Module:

Procurement - Invoicing - Service Invoice Adhoc

Procurement - Invoicing - Service Invoice (Against Document)

Reported Version:

12.4.4

Scenario:

1. Go to Procurement > Invoicing > Service Invoice Adhoc.

2. Then Go to Procurement > Invoicing > Service invoice against document.

3. Now put in some amount for which TDS amount sums to decimal value.

4. Observe that after saving TDS Amount is not being rounded off to the upper value.