Frequently Asked
Questions
Find Solutions to Common Issues Related to taxation - tds tcs data feeding and report
How do I maintain TCS and TDS in BUSY. Is there an automatic pop-up or prompt?
To maintain TDS and TCS in BUSY, follow these steps:
Step 1: Go to the Administration menu.
Step 2: Click on Feature and Option.
Step 3: Click on TDS/TCS option, and enable TDS or TCS from there. You can also enable a warning for TDS or TCS from sale or purchase for giving a warning in the respective voucher if a party is eligible for it.
Step 4: Enable TDS/TCS from the party master from the account, from Account- modify option under the Administration menu. Also, define the payee category there.
Step 5: Now, do the transaction either in a sale or purchase voucher in which you want under the transaction menu.
Step 6: You have to enter TDS or TCS in the bill sundry either if the party is eligible for TDS or TCS. While saving the voucher, a "warning of not applying TDS or TCS" will appear. Click "Yes" to the same window, then TDS or TCS will apply automatically on bill sundry.
What's the difference between TDS and TCS, and how do I account for them in the software?
TDS is the tax which is deducted on a payment made by a company to an individual, in case the amount exceeds a certain limit. TCS is the tax which is collected by sellers while selling something to buyers. TDS deduction is applicable on payments such as salaries, rent, professional fee, brokerage, commission, etc.
You can enable the TDS and TCS from in BUSY from below steps.
Step 1: Click on Administration
Step 2: Then Configuration
Step 3: Then Features and Options
Step 4: Then click on TDS/TCS
Step 5: Enable the TDS/TCS option
Step 6: Mention the warning for TDS and TCS as per your requirement in the bottom.
Step 7: Open the party account in modify mode
Step 8: Then in TDS/TCS window, mention the applicable limit- as per your requirement and payee category.
Step 9: Then in purchase voucher will calculate automatically the TDS and TCS in the sale voucher and reference will get create.
How do I create TDS references in BUSY? Can you guide me through the process?
When you book the TDS entry that time we have to create the TDS reference and when you make the TDS payment then have to adjust it that tds reference.
Step 1: Click on Administration
Step 2: Then Configuration
Step 3: Then Features and Options
Step 4: Enable the TDS/TCS option
Step 5: Open the party account and expense account in modify mode, then mention the TDS category in the expense account and Payee category in the party account.
Step 6: Book the TDS expense entry through payment or journal voucher. DEBIT the expense account and CREDIT the party account and TDS account.
When you save the voucher the tds reference will get create and can adjust the refernce during the TDS payment.
Step 7: When you do the TDS payment, Then DEBIT the tds acccount and CREDIT the bank account. Adjust the tds reference which you have created in while booking the tds entry.
I am confused about the difference between TDS and TCS. Can you explain the difference and how to account for them in the software?
TDS is the tax which is deducted on a payment made by a company to an individual, in case the amount exceeds a certain limit. TCS is the tax which is collected by sellers while selling something to buyers. TDS deduction is applicable on payments such as salaries, rent, professional fee, brokerage, commission, etc.
You can enable the TDS and TCS from in BUSY from below steps.
Step 1: Click on Administration
Step 2: Then Configuration
Step 3: Then Features and Options
Step 4: Then click on TDS/TCS
Step 5: Enable the TDS/TCS option
Step 6: Mention the warning for TDS and TCS as per your requirement in the bottom.
Step 7: Open the party account in modify mode
Step 8: Then in TDS/TCS window, mention the applicable limit- as per your requirement and payee category.
Step 9: Then in purchase voucher will calculate automatically the TDS and TCS in the sale voucher and reference will get create.
I am facing an issue where TCS is being applied on all parties instead of just the select parties. How do I fix this?
To configure the TCS configuration should done properly in BUSY and TCS is enable in the party master.
Pls Follow the Below the Steps for TCS Calculation :
Step 1: Click on Administration
Step 2: Then Configuration
Step 3: Then Features and Options
Step 4: Enable the TDS/TCS option
Step 5: Mention the warning for TDS purachse and payment voucher as per your requirement in the bottom.
Step 6: Open the party account in modify mode
Step 7: Then in TDS/TCS window, mention the applicable limit- Applicable from Start.Then TDS will get charge if the limit get cross after 50 lakh.
Step 8: Book the TCS entry through sales voucher by adding the TCS bill sundry.When you save the voucher then tcs reference will get create and can adjust the refernce during the receipt voucher.
Step 9: When you do the TCS payment, Then DEBIT the tcs acccount and CREDIT the bank account. Adjust the tcs reference which you have created in while booking the tds entry.
What should I check to reconcile differences between TDS eligibility and actual deductions?
To reconcile differences between TDS eligibility and actual deductions, you should check the following:
1. Verify the TDS eligibility criteria for different parties, such as resident, NRI, etc.
2. Ensure that the threshold limit for TDS eligibility is calculated correctly.
3. Check if the TDS deductions are being applied correctly based on the applicable TDS rates for different categories.
4. Review the transactions and ensure that the assessable value and tax amount are accurately recorded for TDS calculations.
5. Confirm if any disallowances or deductions under section 40 are accounted for while deducting TDS.
6. Check if any lower TDS deduction certificates are provided and accounted for correctly.
7. Verify if any excess TDS deductions in one period are adjusted against the liability of the next period.
8. Ensure that any interest or penalty paid for TDS defaults are accounted for accurately.
9. Review the process for revising TDS returns and understand the impact on accounting.
How do I setup TDS categories and references in BUSY? What is the correct way to configure this?
To setup the TDS deduction in the voucher and TDS category.
Pls follow the below steps for TDS category :
Step 1: Click on administration
Step 2: Then Masters
Step 3: Then TDS Category
Step 4: Select the TDS Category, then open and change the tax rate for the payee category in the tds with PAN and TDS without PAN column and save it.
Pls Follow the Below the Steps for TDS Calculation :
Step 1: Click on Administration
Step 2: Then Configuration
Step 3: Then Features and Options
Step 4: Enable the TDS/TCS option
Step 5: Mention the warning for TDS purachse and payment voucher as per your requirement in the bottom.
Step 6: Open the party account in modify mode
Step 7: Then in TDS/TCS window, mention the applicable limit- as per your requirement and payee category.
Step 8: Then in purchase voucher will calculate automatically when limit get cross and reference will get create.
I can't locate the TCS for sales/purchase heads. Can you please guide me where to find them?
To configure the TCS configuration should done properly in BUSY and TCS is enable in the party master.
Pls Follow the Below the Steps for TCS Calculation :
Step 1: Click on Administration
Step 2: Then Configuration
Step 3: Then Features and Options
Step 4: Enable the TDS/TCS option
Step 5: Mention the warning for TDS purachse and payment voucher as per your requirement in the bottom.
Step 6: Open the party account in modify mode
Step 7: Then in TDS/TCS window, mention the applicable limit- Applicable after limit.Then TDS will get charge if the limit get cross after 50 lakh.
Step 8: Book the TCS entry through sales voucher by adding the TCS bill sundry.When you save the voucher then tcs reference will get create and can adjust the refernce during the receipt voucher.
Step 9: When you do the TCS payment, Then DEBIT the tcs acccount and CREDIT the bank account. Adjust the tcs reference which you have created in while booking the tds entry.
I am getting errors while trying to account for TCS tax in BUSY. How to resolve this?
To resolve errors while accounting for TCS tax in BUSY, you can try the following steps:
1. Make sure that TCS is enabled in the software. You can check this by going to the settings or configuration section of the software.
2. Verify that the TCS tax rate is correctly set up in the software. Double-check the rate and ensure it is accurate.
3. Check the party master settings for the specific party you are trying to account for TCS tax. Ensure that the TCS category is properly assigned to the party.
4. If the error persists, try regenerating the voucher or restarting the software. Sometimes, this can resolve any temporary glitches or issues.
If the issue still persists, it is recommended to reach out to BUSY support for further assistance. They will be able to provide specific guidance and troubleshooting steps based on the error message or issue you are encountering.
I enabled TCS in BUSY but the TCS report is not generating. What should I do?
To configure the TCS configuration should done properly in BUSY and TCS is enable in the party master.
Pls Follow the Below the Steps for TCS Calculation :
Step 1: Click on Administration
Step 2: Then Configuration
Step 3: Then Features and Options
Step 4: Enable the TDS/TCS option
Step 5: Mention the warning for TDS purachse and payment voucher as per your requirement in the bottom.
Step 6: Open the party account in modify mode
Step 7: Then in TDS/TCS window, mention the applicable limit- Applicable after limit.Then TDS will get charge if the limit get cross after 50 lakh.
Step 8: Book the TCS entry through sales voucher by adding the TCS bill sundry.When you save the voucher then tcs reference will get create and can adjust the refernce during the receipt voucher.
Step 9: When you do the TCS payment, Then DEBIT the tcs acccount and CREDIT the bank account. Adjust the tcs reference which you have created in while booking the tds entry.
