Please find below a detailed guide on how to manage TDS payments and reporting using the India Localization SuiteTax Engine SuiteApp in NetSuite:
Steps to Pay TDS in NetSuite
1. Viewing TDS Tax Details
The India Localization SuiteTax Engine SuiteApp enables users to review tax details for each vendor bill transaction using saved searches. This allows businesses to review the applicable tax details before making payments or filing returns. Note: Only the Administrator role can view TDS tax details.
NetSuite provides default saved searches, but users can also create custom searches if necessary:
- India TDS Tax Details: Lists TDS details for each vendor bill.
- India TDS Tax Adjustments: Displays tax adjustments for each journal entry.
- India Vendor Wise Transaction: Lists transactions sorted by vendors.
To access these saved searches:
- Navigate to Reports > Saved Searches > All Saved Searches.
- Select the required saved search (e.g., India TDS Tax Details) and click View.
Once the TDS details for all relevant bills have been reviewed, users can proceed to generate the TDS challan vouchers for submission to the tax authorities.
2. Generating a TDS Challan Voucher
After reviewing the TDS details, NetSuite allows users to generate a TDS Challan Voucher, which contains the necessary tax-related information for payment submission to the tax authorities. The process for creating a challan voucher is outlined below:
- Accessing the TDS Challan Voucher:
- For the Classic Center, navigate to Transactions > Finance > India TDS Challan Voucher.
- For the Accounting Center, go to Financial > Other > India TDS Challan Voucher.
- Creating the Challan Voucher:
- Click New India TDS Challan Voucher.
- Complete the following fields:
- Subsidiary: Select the relevant subsidiary.
- Transaction Period: Specify the start and end dates for the bills covered by the challan.
- Bank Details: Enter the bank challan number, BSR code, and payment date.
- Section Code: Select the appropriate section code.
- Other required fields, such as Minor Head of Challan (e.g., TDS Payable by Taxpayer or TDS Regular Assessment).
- Click Save.
- Key Fields in the Challan Voucher: The following fields are available on the TDS Challan Voucher:
- Challan for NRI: Check this box for Form 27Q if applicable.
- Tax Transaction From/To: Specify the date range of transactions.
- Bank Challan Number: Enter the challan number from the bank.
- Bank Branch Code: Enter the BSR code of the receiving branch.
- Minor Head of Challan: Choose the type of challan (e.g., TDS payable or regular assessment).
3. Submitting TDS Payment
After generating the TDS Challan Voucher, the payment needs to be made manually through the bank’s portal. NetSuite tracks this process via the challan voucher, but the payment submission is handled externally.
4. Recording the Payment in NetSuite
Once the TDS payment is made, the payment record should be entered in NetSuite:
- Go to Transactions > Payables > Make Payment.
- Select the vendor or tax agency, enter payment details, and apply the payment to the TDS liability recorded in the challan voucher.
- Click Save.
5. Handling Adjustments with TI Journals
NetSuite automatically generates TI Journals to reflect any changes or deletions made to bills that impact TDS. These journals adjust the TDS liability accordingly, ensuring that any updates to the bills are properly tracked.
6. TDS Reporting and Filing
After the TDS payment is recorded, users can generate TDS forms (e.g., Form 26Q, Form 27Q) for filing with the tax authorities. These forms can be generated from saved searches or custom reports.