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How to pass Tax collected at source (TCS) entries in tally

 What is tax collected at source ?

Tax collected at source 'meaning'.

Tax collected at source also known as 'TCS' is a tax collected at source on some specified goods by the seller (collector) from the buyer (payee) after collections from the buyer then seller would be liable to deposit the same to the government by filling TCS returns. The tax are charged in particular  manner as so prescribed by government on particular goods. It's applicability only bind some specified goods not all goods.


Tax collected at source examples:

TCS calculation

If purchase value of goods is 10000 then for purchasing this good the buyer will have to pay an amount of 10000+x (x being the value of TCS as prescribed by government) to the seller. The seller will be  accountable for deposit the tax collected at source (TCS) at any of the manner which deem to be fit to the government.

Classification of seller

A seller of particular goods may be of any other in following heads and subject to collect TCS and no one else can collect tax:

Central government

State government 

Local authorities

Statutory corporate authority

Any person or HUF who is subjected to an audit of accounts under income tax for a party financial year.

Company incorporated under companies act

Partnership firm 

Corporate society etc.


Here is the chart of specific goods enumerated for collection TCS tax.


Nature of goods.                                                 Rate


1. Liquid of  Alcohol  nature                             1%

2. Timber wood under forest leased.              2.5%

3. Tendue leaves                                                   5%

4. Timber wood other than forest leased.      2.5% 

5. Scrap.                                                                 1%

6. Minerals ( coal, iron ore etc.).                       1% 

7. Bullion that exceeds over                              1%   
Rs. 2 lakhs/ Jewelry that
 exceeds over Rs. 5 

8. Parking lot, Toll Plaza and Mining.             2%



How to calculate TCS tax using tally ERP 9?


Tax collected at source in tally ERP 9  for generating tax amount is very easy and simple to handle it. This software has well versed and competent for tax estimation. 

Step by step process of TCS in tally:

Step 1. First create a company or choose your existing company which seems feet by pressing alt+f3.


Step 2. Press F11 key then choose 'statutory and taxation' enable 'TCS' option.



Step 3. Go to gateway of tally --> accounts info --> ledgers --> create following heads:

Bank a/c                 under.               Bank accounts

Sales a/c.                 Under.              Sales account

Debtors (name).    Under               sundry debtors
          
TCS tax %               under.              Duties and taxes



Step 4. Back to gateway of tally --> inventory info --> then create following heads:

Stock group*
Stock categories*
Stock item
Units of measure
Go down.

(* Note - create this heads also if it is required)



Step 5. Back to gateway of tally select inventory voucher press f8 for sales voucher then pass sales entry also deduct TCS tax @ %.

Step 6. Press f5 for receipt voucher and pass receiving entry.

Step 7. Back to gateway of tally --> display --> statutory reports --> TCS reports. 




        








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