TDS deduction from Vendor Advance
We raised a PO for vendor-X of amount 1,00,000/- and agreed to pay the vendor in 5 equal installments at specific milestones starting with a 20000 as an advance. Since it is an advance we dont have a bill and so we just recorded a payment by manually deducting 10% TDS of 2000 and so recorded 20000 - 2000 = 18000 through bank transfer.
We couldnt convert the PO to bill since then we need to pay the 18% GST on the entire amount of 100000 immediately instead of waiting for the bill from the vendor and then paying the GST.
Please suggest how can we keep a track of TDS deducted for all vendor advance. Also, the bills we receive from the vendor is of 20000 each once each milestone is complete. How do I reconcile the PO of 100000 and the 5 bills of 20000 against the PO.