In some cases we need to book TDS at the time of making receipt vouchers, for that you need to follow these steps:
- While create Receipt from Customer transaction, you need to select the invoice against which you are receiving payment.
- Next to Tax Deducted Account, you need to select Tax Deducted Receivable. This account is created by default and is under head 'Current Assets'.
- Enter the tax amount deducted by the customer.
Similar steps need to be followed when you are making payment to a supplier and deducting tax. Only the account name changes to 'Tax Deducted Payable'