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Manage Expense GST & TDS

The Expense Module of Daai Business Suite allows you to record GST and TDS along with each expense. This ensures all compliance-related details, challans, and reports are properly maintained in one place. The system only keeps financial records — there is no auto tax calculation, return filing, or GST / TDS portal integration. For TDS, the system auto-creates challan records, and you must manually enter section codes, ITNS codes, and challan details after payment outside the system.

✅ Cross Reference

✅ Why is it important?

  • Ensures expenses comply with Indian GST & TDS laws.
  • Records GST input credit and TDS deductions based on values entered at the time of creating / editing the Expense record.
  • Saves time during audit and statutory returns.
  • Links directly with TDS Challan Module and Finance Reports.

🛠 Prerequisites

  • Vendor details: GSTIN (if GST applies), PAN (if TDS applies).
  • Vendor invoice showing tax breakup (CGST / SGST / IGST) and / or TDS.
  • Correct financial year for the expense.

🛠 How it works

🧾 How to Add GST to an Expense

  1. While creating or editing an expense record, locate the Is GST checkbox.
  2. ✅ Tick the checkbox.
  3. New fields will appear: CGST / SGST / IGST.
  4. Enter the tax values manually as per the vendor’s invoice.
    1. The system auto-adds the entered GST to the Total Amount.
    2. Verify that the auto-calculated Net Amount (before tax) and Total Amount (after tax) are correct.
  5. 💾 Save the expense.

⚠️ Notes

  • For interstate vendors → Use IGST.
  • For same-state vendors → Split between CGST & SGST.
  • GST is only recorded for reporting and audit; the system does not auto-calculate or file returns.

🧾 How to Add TDS to an Expense

  1. While creating or editing an expense record, locate the Is TDS checkbox.
  2. ✅ Tick the checkbox.
  3. New fields will appear for the TDS amount. Enter the TDS amount manually as per the applicable section (the system does not auto-fill or auto-calculate any percentage) → The Total Amount after Deducting TDS updates accordingly.
    1. Enter the TDS amount yourself based on the applicable section rate.
    2. Enter PAN of Deductee where required. PAN is not universally mandatory — it is required only when the Payment Mode is Cash and the amount exceeds ₹50,000 (Rule 114B).
  4. 💾 Save the expense → The system will auto-create a TDS Challan record in Finance → TDS Challan.

⚠️ Notes

  • The system maintains records only → No auto-calculation, filing, or portal integration.
  • Always double-check Section Code before filing.
  • Section Code, ITNS Number, and challan-paid details are filled in after you actually pay tax on the government portal. Until then the challan stays Unpaid.
  • TDS challan records created inside the system are for tracking and compliance reference only. Go to the TDS Challan module to review the auto-generated challans. There you can update the Section Code (e.g., 194C, 194J, etc.), ITNS code, and payment details after filing tax on the Govt TDS portal.

📊 PnL Impact

  • GST values feed the Net GST Payable line (Output GST − Input GST).
  • TDS values feed the Total Taxes line (TDS + Net GST Payable).

⭐ Important Points

  • Always cross-check GST values with the vendor invoice before saving.
  • TDS challan creation inside the system is for record-keeping only; actual tax filing must be done externally.
  • Ensure all challan details are updated after payment for accurate compliance tracking.
  • Vendor GSTIN must match invoice to be valid for credit.
  • TDS challan generated here cannot be deleted → only rectified in TDS module.
  • Any change in tax rates must be updated by Admin in System Master Settings.

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