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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. When the checkbox is ticked, the system pre-fills 10% of Net Amount as the TDS default and updates the Total Amount after Deducting TDS.
    1. The pre-filled TDS percentage is the system default — adjust as needed for the applicable section.
    2. Enter PAN of Deductee (mandatory).
  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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