How to Track Vendor Advance Payments & Deduct Section 194Q TDS in Tally Prime
How to Track Vendor Advance Payments & Deduct Section 194Q TDS in Tally Prime
Step-by-step SOP to record advance payments to suppliers, deduct 0.1% TDS under Section 194Q, and adjust advances against final purchase invoices in Tally Prime.
Who is this for: TDS & Compliance SOPs
Under Section 194Q of the Income Tax Act, buyers with turnover exceeding ₹10 Crore must deduct 0.1% TDS on purchase of goods from a resident seller exceeding ₹50 Lakh. Because TDS must be deducted at the time of credit or payment, whichever is earlier, paying an advance to a supplier triggers mandatory TDS deduction in Tally Prime.
Quick Answer: How to Pass Vendor Advance TDS 194Q Entry in Tally?
In Payment voucher (F5), select Bank ledger, select Vendor ledger, set Bill-wise Reference to 'Advance', and select the Section 194Q TDS Duty ledger. When the final purchase invoice is recorded later, select 'Agst Ref' to adjust the advance and balance TDS deduction.
- TDS under 194Q must be deducted at payment or credit, whichever is earlier.
- Use 'Advance' bill reference in F5 Payment voucher, then 'Agst Ref' in F9 Purchase voucher.
- TrulyInvoice tracks cumulative vendor balances to automate 194Q TDS ledger mapping.
1. Step-by-Step SOP for Advance Payment with TDS 194Q
- Go to
Gateway of Tally > Vouchers > F5 (Payment). - Select Bank account under Account, then select the Vendor ledger under Particulars.
- In Bill-wise Details, select Advance and assign a reference number.
- Select the TDS u/s 194Q duty ledger line item to deduct 0.1% TDS.
2. Adjusting Vendor Advance in F9 Purchase Voucher
When the physical purchase invoice arrives, record the F9 Purchase Voucher. Under Bill-wise Details, select Agst Ref and choose the advance payment reference number to link the transaction.
3. Streamline 194Q Purchase Invoices with TrulyInvoice
TrulyInvoice tracks cumulative purchases and automatically manages 194Q ledger mapping when posting F9 purchase vouchers to Tally Prime in 15 seconds.
Automate Section 194Q Purchase Entries
Upload supplier bills and post F9 purchase vouchers directly into Tally Prime in 15 seconds.
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