{"id":11040,"date":"2023-01-24T11:44:50","date_gmt":"2023-01-24T06:14:50","guid":{"rendered":"https:\/\/razorpay.com\/blog\/?p=11040"},"modified":"2025-03-05T09:40:52","modified_gmt":"2025-03-05T04:10:52","slug":"auto-tds-payments-with-razorpayx","status":"publish","type":"post","link":"https:\/\/razorpay.com\/blog\/business-banking\/auto-tds-payments-with-razorpayx\/","title":{"rendered":"New and Improved Auto TDS payments with RazorpayX"},"content":{"rendered":"

TDS payments are a critical part of all vendor invoices<\/a> as these are mandated by law. The RazorpayX Vendor Payments<\/a> portal allows you to calculate your tax payments and automate them for error-free and hassle-free tax payments. But we have added a whole new capability to this feature.\u00a0<\/span>
\n<\/span><\/p>\n

What\u2019s new?<\/b><\/h2>\n

As we expand to cater to <\/span>merchants from accrual-based accounting (where <\/span>accounting is done first and then payment is made), the TDS liability<\/a> needs to be created based on the invoice date or paid date whichever is earlier. <\/span><\/p>\n

The new feature allows you to auto pay TDS on the invoice raised date instead of the payment date.<\/span><\/p>\n


\n<\/span>Let\u2019s understand with an example<\/b><\/h3>\n

A raises an invoice to B for payment of Rs. 1000. 500 was paid on Jan 1 as an advance payment<\/a> before getting the invoice. The invoice was booked in accounting on Jan 15 and the final leg of payment was done on Feb 15. Let\u2019s say Vendor A falls under the TDS category of Professional Services with a 10% deduction.<\/span><\/p>\n

TDS Rate Chart for FY 2022-23\/AY 2023-24<\/span><\/a><\/p>\n

TDS Paid on payment date:<\/span><\/p>\n