TCS
in Tally ERP9 (Tax collected at source)
Transactions comes under TCS
In TCS, a few number of
type of transactions comes under the TCS ambit.They are,
·
Alcoholic liquor for human consumption including Indian Made
Foreign Liquor (IMFL)
·
Tendu leaves
·
Timber obtained under a forest lease
·
Timber obtained by any mode other than under a forest lease
·
Any other forest produce not being Timber or Tendu
·
Scrap (Scrap means waste and scrap from the manufacture or
mechanical working of materials which is usable as such because of breakage,
cutting up, wear and tear and other reasons)
·
Licensing or leasing of Parking Lot, Toll Plaza
·
Mining and quarrying
Example TCS Transaction
MASTERS CREATION FOR TCS
1. Enable TCS in Tally ERP9
To activate TCS go to.
Go to Gateway of Tally > F11: Features > Statutory and Taxation.
In the Statutory and
taxation screen enable the following options
·
Enable Tax collected at source ( TCS) : Yes
·
Set/Alter TCS Details :Yes
When setting Set/alter TCS details to Yes you will have a new screen where companies TCS Collectors details will have to be entered.
· Enter TAN registration number : For eg: T8545545KLC
·
TAN:
·
Collector Type
·
Set/alter details of person responsible: No
·
Ignore IT exemption Limit: No
Press Enter and save.
1. Create TCS Nature of Goods
The next step is to create
TCS Nature of Goods.
To do that Go to
Gateway of Tally > Accounts Info. > Statutory Info. > TCS Nature of Goods > Create
Enter the details .
Enter The name of goods: In our example it is scrap.
Section: is 206C for all TCS Goods category.
Payment code: 6CE for Scrap
Tcs rate: for scrap current rate is 1%.
Threshold /exemption limit
: Leave it blank.
There is no excemption limit
for TCS other than
Bullion if consideration (excluding any coin / article weighting 10 grams or less) exceeds Rs. 2 Lakhs or jewellery if consideration exceeds Rs. 5 Lakhs (and any amount is received in cash) (applicable from July 1, 2012)”
For your convenience, I have
created a TCS Payment code & TCS Rate Table.
Payment code for TCS
|
Section |
Nature of
Transaction |
TCS Payment
Code |
|
Section |
Nature of
Transaction |
TCS Payment Code |
|
206C |
Collection at
source from Alcoholic Liquor for Human Consumption |
6CA |
|
206C |
Collection at
source from Timber obtained under Forest lease |
6CB |
|
206C |
Collection at
source from Timber obtained by any Mode other than a Forest Lease |
6CC |
|
206C |
Collection at
source from any other Forest Produce (not being Kendu Leaves) |
6CD |
|
206C |
Collection at
source from Scrap |
6CE |
|
206C |
Collection at
source from contractors or licensee or lease relating to Parking lots |
6CF |
|
206C |
Collection at
source from contractors or licensee or lease relating to toll plaza |
6CG |
|
206C |
Collection at
source from contractors or licensee or lease relating to mine or quarry |
6CH |
|
206C |
Collection at
source from tendu leaves |
6CI |
Here is a TCS Rate chart for your reference.
|
Section |
Nature of
Payment |
TCS Rate
for Individual |
TCS Rate
for Others |
|
Section |
Nature of Payment |
TCS Rate for Individual |
TCS Rate for Others |
|
206C |
Scrap |
1 |
1 |
|
206C |
Tendu Leaves |
5 |
5 |
|
206C |
Timber obtained under a forest
lease or other mode |
2.5 |
2.5 |
|
206C |
Any other forest produce not
being a timber or tendu leave |
2.5 |
2.5 |
|
206C |
Alcoholic Liquor for human
consumption |
1 |
1 |
|
206C |
Parking Lot, toll plaza, mining
and quarrying |
2 |
2 |
|
206C |
Minerals, being coal or lignite
or iron ore (applicable from July 1, 2012) |
1 |
1 |
|
206C |
Bullion if consideration
(excluding any coin / article weighting 10 grams or less) exceeds Rs. 2 Lakhs
or jewellery if consideration exceeds Rs. 5 Lakhs (and any amount is received
in cash) (applicable from July 1, 2012) |
1 |
1 |
1. Create a party ledger with tcs applicability
You know how to create a party
ledger. To do this, go to.
Gateway of
Tally>Accountsinfo>Ledgers>Create
In ledger creation
screen,under statutory Information activate the follwing option.
Is TCS applicable ?
: Yes
Buyer/Lessee
Type: Company-Resident
Select exact collectee type
from the list
Filling ‘Tax
registration details’ is a must for E-tcs,The final screen will look like
below.
1.Creating Sales Ledger Go to
Gateway of Tally > Accounts Info. > Ledgers > Create
Enter the following details
in sales
ledger.
·
Name: Enter the name of sales ledger
·
Under: Sales Account
·
Under statutory information
·
Is TCS Applicable: Applicable.
·
Nature of goods : Select the TCS nature
of goods we have created above. ie, scrap.
The screen will look like
this.
1.Creating stock item for TCS
Checkout this article on
creating stock item if you are unaware of it.
Go to
Gateway of Tally > Inventory Info. > Stock Item > Create
·
Name: Stock item name
·
Under: Select the group of stock item if any else select primary.
·
Unit: MT – Select the unit for the stock
item
·
Is TCS Applicable : Applicable
·
Nature of goods : Select the TCS nature
of goods we have created above. that is, scrap.
1.TCS Ledger creation
Next step is to create a tax
ledger, called tcs ledger.
·
Name : Enter the TCS Ledger name.
·
Under : duties & taxes
·
Type of duty/tax : TCS
·
Nature of goods/Contract/License/Lease :
Scrap
Below is the screen shot of
tcs ledger creation.
TRANSACTIONS IN TCS
1.Sales transaction in tcs
Our example transaction is
Go to Gateway of Tally > Accounting Vouchers > F8: Sales > Item Invoice
Party’s Account Name : Lakshmi Metal Works.
Sales Ledger : Scrap sale ( here scrap sale).
Name of item : Scrap
Enter quantity ,rate
Press Enter Key twice
Then choose TCS Ledger
we have created. The TCS will be calculated automatically.
Below is the sales transaction screenshot.
Save the screen by using Ctrl+ A/Enter Key.
1.Payment transaction in tcs
According to section 206C
shall be paid to the credit of the Central Government within one week from the
last day of the month in which the collection is made.
Read more about TCS Payment here
How to do TCS payment in
Tally ERP9?
Go to Gateway of Tally > Accounting Vouchers > F5: Payment
Select bank, then in
particulars select TCS Ledger.
Press enter, You will have a screen where TCS Nature of Goods details can be selected.
3.Printing TCS challan NO/ITNS 281
Press enter and save the
screen after giving details in bank allocation details.
You can print TCS Payment
challan No /ITNS 281 right away from this payment voucher.
To do this ,Click Print or
use Alt + P from this Payment voucher.
You will get a print
configuration screen.
Inside the configuration
screen there is an option.’Print as TCS challan’.
Type ‘Yes’Here
if ‘NO’ is given,a Normal payment voucher will be printed.
Here is the image of TCS
Payment Challan.