TCS
INTRODUCTION
TCS (Tax Collected At Source) is an example of direct tax because it’s an income tax that is collected by the seller from the buyer at the time of sale of goods.
TCS ITEMS WITH TAX RATES
Nature of Goods | Percentage |
Alcoholic liquor for human consumption | 10% |
Tendu Leaves | 5% |
Timber obtained under a forest lease | 2.50% |
Timber obtained by any mode other than under forest lease | 2.50% |
Any other forest produce not being timber or Tendu leaves | 2.50% |
Scrap | 1% |
STEPS TO ACTIVATE TCS
1. Open an already existing company.
2. Press “F11” key.
3. Select the “Statutory & Taxation”
4. Make yes to “Enable Tax Collected Source (TCS)” and “Set/Alter TCS Details”
REQUIRED LEDGERS TCS VOUCHER ENTRIES
PARTY LEDGER
Ledger name: Umesh Furniture Store
Group: Sundry Debtors.
Is TCS Application: Yes TCS (Tax Collected Source)
TCS TAX LEDGER EXAMPLE
Ledger name: TCS A/c
Group: Duties & Taxes
Nature of Goods/Contract/License/Lease: Timber Obtained Under Forest Lease
Group: Duties & Taxes
Nature of Goods/Contract/License/Lease: Timber Obtained Under Forest Lease
Is TCS Application: Yes
To insert TCS transaction's details in voucher we have to follow the below steps.
STEPS FOR TCS VOUCHER ENTRY IN TALLY ERP 9
1. Click on the "Accounting voucher"
2. Click on "Sales" voucher or press "F8"
3. Insert party ledger under "Party A/c Name"
4. Insert Sales a/c ledger under "Sales Ledger"
5. Add stock items and tax ledger.
TCS PRACTICE QUESTION
Mono Timbers Pvt. Ltd.
Inventory items
Stock items | Group | Quantity | Price | Sales price |
Timber | Wood | 85,000 (Kg) | 60 | 80 |
Leaves | Tendu | 50,000 (PCs) | 5 | 12 |
Scrap | Plastic | 70,000 (Kg) | 12 | 15 |
Ledgers Entries
Opening Balance Rs. 7,50,000
Cash at bank Rs. 15,00,000
Voucher Entries
1. Sold goods (750 Kg. Timber) To Umesh Furniture Store with TCS
2. Purchase Ceiling fan for office use amount Rs. 5,000
3. Paid LIC premium Rs. 7,000 by cheque
4. Sold goods (200 Kg. Plastic Scrap) to Mr. Sunil withTCS
5. Sold goods (5,000 Tendu Leaves) Mr. Anil with TCS
6. Withdraw cash Rs. 20,000 from bank to personal use.
7. Paid Employee welfare Rs. 25,000
8. Sold goods (850 Kg Timber & 2,500 Tendu Leaves) to Mr. Anil with TCS
9. Withdraw cash Rs. 5,00,000 from bank to office use.
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