Tax Collected at Source (TCS) Sales Invoice in Tally
TCS Invoice Entry for Product Sale in Tally
Sales Invoice Entry has been discussed earlier. Here, we discuss points specific to Sales with TCS,
TCS Sales Voucher entry in Tally
At Sales Invoice Entry screen , having entered Party & Sales Ledger and the Stock Item details, as usual, select the TCS ledger to get the TCS details sub screen.
TCS Details in Sales Invoice in Tally
By default the Gross Amount and the default Rates of TCS are shown. However, you may change the Assessable Value. The Duty would be computed accordingly and carried to main screen in the Invoice against the TCS Ledger.
Change in TCS Rate in Invoice: To change TCS Rate, at Invoice Entry screen, click F12:Configure to get Invoice Entry Configuration screen. Set Yes at Allow Alteration of TCS Rate for Lower Collection .
TCS Invoice Entry Configuration in Tally
Invoicing with Lower / Zero TCS Rate
Some Parties (Collectee) are entitled to be charged at lower Rate (or Zero Rate). Here we explain the process of creation of Ledgers & Invoice with Tax Relief (Lower / Zero Rate).
Create the following Ledger Accounts :
a. Collectee Ledger : Party (Collectee) Ledger creation / alteration screen has been explained earlier .
Collectee Ledger creation in Tally
At Party Ledger entry screen, set Yes at Is TCS Applicable to get TCS Details screen.
TCS Details in Deductee Ledger : For Parties having been sanctioned Tax Relief ((Lower / Zero Rate), at TCS Details screen , at Is Lower / No Tax Rate applicable, set Yes and then enter the following details in respect of Lower Rate Applicable, as described earlier :
- I Tax Section Number:At Section Number, enter the I Tax Section Number and applicable TCS Lower Rate for the Party (enter zero at Rate if no TCS is to be charged).
- Applicable TCS Rate : At TCS Lower Rate, enter the applicable TCS Rate
TCS Collectee Ledger set up for Tax Relief in Tally
b. TCS Ledger Ledger creation for Lower Rate : We have discussed TCS Ledger Creation earlier. It is recommended to create a separate TCS Ledger for Lower Rate, apart from the TCS Ledger for Normal Rate.
TCS Ledger set up for Lower Rate in Tally
TCS Sales Invoice Entry with Zero / Lower Rate
Sales Invoice Entry with TCS has been explained earlier .
TCS Sales Invoice with Lowe Rate in Tally
At Sales Invoice Entry , after entry of Item details, select TCS Ledger Account to get TCS details screen , showing Tax Computation as per TCS Rates specified for Collectee Ledger .
TCS Sales Invoice Printing in Tally
Sales Invoice Printing has been explained earlier. On entry of Sales Invoice , click P: Print button to get Invoice Printing Screen .
TCS Invoice Printing Configuration in Tally
At Invoice Printing screen, click F12:Configure to get Invoice Printing Configuration screen. At Invoice Printing Configuration screen, at Print TCS details, set Yes, to get TCS Invoice in Print .
TCS Invoice in Print in Tally
TCS Bill for Lease Income in Tally
We have discussed Invoice by Collector charging TCS in Sale Invoice of Goods. In the same way, A Collector granting Lease or License or transferring any right or interest (e.g in a parking lot, Toll plaza, Mine, Quarry etc) to another person, for Business, is liable to collect tax at source from the licensee or lessee at prescribed Rate.
The exclusive steps for TCS Invoice on Right to Use is explained next
TCS set up for Accounts Ledger for Lease Income in Tally
Here we discuss about Accounts Ledger Creation related to TCS Voucher
a. TCS Ledger Creation : We have already explained TCS Ledger Creation . At TCS Ledger creation / alteration for Contracts , enter as follows :
- TCS Types : At Nature of Goods / Contract /License / Lease, select the TCS Type from the list of TCS Types .
- Inventory Link : At Inventory Values are Affected, set No (as no Stock Item is involved)
TCS Ledger creation for Lease Income in Tally
b.TCS Collectee Ledger Creation: We have already explained TCS Collectee Creation .
TCS activation for Collectee Ledger in Tally
In the same way, create Collectee Ledger and set the TCS details , as explained earlier
TCS set up for Collectee Ledger in Tally
c. Direct Income Ledger : Create Income Ledger under Direct Income Group. At Inventory Values are Affected, set No (as no Stock Item is involved)
TCS Chargeable Lease Income Ledger creation in Tally
Sales Voucher Creation for Lease Income in Tally
We have explained Sales Voucher creation in Accounting Invoice Mode. Here we explain TCS Sales Voucher creation.
At Sales Voucher Configuration screen (GoT >F12:Configure> Voucher), orat Sales Voucher Entry screen (click F12:Configure), set Yes at Allow Income Accounts in Sales Voucher , as described earlier to enable selection of Direct Income Accounts at Sales Accounts
Sales Voucher Configuration for Lease Income in Tally
At Voucher entry screen, Click I:Acct Invoice toggle button to get Sales Voucher Entry screen in Accounting Voucher entry mode.
TCS Sales Voucher in Accounting Invoice Mode in Tally
At Sales Voucher Entry screen , enter as follows:
- At the Header, select the Licensee (Collectee) Ledger
- Under Particulars column, enter as follows :
- Direct Income Ledger : Select the Direct Income Ledger and enter the amount of License Fees at Amount Column.
- TCS Ledger : Select the TCS Ledger to get the TCS Details screen (F-8C), as explained earlier, showing the Assessable Amount and computed TCS Amount. The TCS Amount is carried at the main voucher screen
Enter other Ledger account details, if any. Enter Voucher Narration and save the Voucher
TCS Details entry in Sales Accounting Voucher in Tally