TCS Accounts System Overview of Tally Accounting Software
Tax Collected at Source (TCS)
TCS (Tax Collected at Source) : TCS is the Income Tax that a seller collects from the buyer during the sale of specific goods (lie Timber, tendu Leaves etc.) or contract (like Lease/License for Parking Lot, Toll Plaza, Mining, Quarrying etc.). The collector must get a TAN from Income Tax department and mention the TAN in transaction document and in challan for TCS deposit. The Buyer should furnish PAN (otherwise higher rate of TCs would be applied).
TCS Chargeability : TCS is chargeable for sellers having turnover over a threshold limit (currently 1 Crore turnover for Business, 50 Lakhs Income for Service), TCS may be charged on sale of their goods.
- Bullion valued Rs 2 Lakhs and Jewellery valued avove Rs 5 Lacs are subject to TCS.
- TCS is not chargeable for Goods purchased for personal consumption. TCS is also not chargeable when goods are purchased for manufacturing, processing, but not for Trading.
- TCS is not chargeable for Goods purchased by Public Sector Company, Central government, State government, Embassy, High commission, Commission, Legation, Consulate and trade representation of a foreign state or club.
- In some cases, the AO may issue certificate for charging lower rate of TCS.
- TCS is chargeable on Amount received as Advance.
TCS Collection : TCS is collected by Seller from Buyer (Resident in India), on sale of specified Goods, at the point of sale. TCS is collected at the point of sale. However, Seller having turnover above threshold limit (Rs 10 Crore during preceding Financial Year), may opt to collect TCS on receipt of Amount, and not on Invoice.
TCS Deposit with Government : The Seller (also called Collector) is liable to deposit TCS to Government.
- TCS Deposit Through Challan at Bank Counter: TCS may be deposited with Bank, through Challan 281, duly filled up. TCS may also be paid on line,
- TCS Deposit through On-line Payment (e-payment) : All Companies and assessee liable to Audit u/s 44AB, must pay TCS on-line. Others have option to pay on-line or through Bank Counter.
e-payment may be made by assessee through Income Tax portal, using various payment gateways like : Net Banking, Debit Card, Credit Card, RTGS/NEFT, UPI, etc.
TCS Return Filing: TCS Returns are to be filed Quarterly, within 15th of the next month following the Quarter. Government and Corporations must file e-TCS (electronic filing). Other Collectors may file TCS return through e-TCS or paper Return
TCS Set up in Tally Accounting Software
Chargeability of TCS depends on Turnover of the organisation and Turnover of the Customer. Tally provides tracking Sale to a customer, to determine the TCS Chargeability. Tally provides option to charge TCS on Invoice (Charge TCS in Invoice) or on realisation basis (Charge TCS on receipt of Payment), as per Rules. The TCS Accounts maintenance & Compliance involves following major steps
TCS Initial Set Up Set up in Tally Accounting Software
- Deductor Initial Set Up : TCS option must be activated for the Company which is liable to collect TCS.
- Masters Creation : Create Masters exclusively for TCS,
- Masters Update : update TCS related info in Other Masters,
TCS Voucher Entry in Tally Accounting Software
- TCS Collection Vouchers Entry
- TCS Deposit Vouchers Entry
TCS Reports Printing Set up in Tally Accounting Software
- TCS Reports
- TCS Statutory Reports in Tally
TCS Returns Filing Set up in Tally Accounting Software
TCs Reports Filing with Portal
TCS Initial Set Up Set up in Tally Accounting Software
TCS set up for Collector in Tally Accounting Software : If the Company is liable to charge TCS as per rule from the Buyer, then it activate TCS in Tally. You will need to enter relevant details of Collector, Exemption Limits, details of person responsible, TCS Surcharge & Cess Details, etc. So, first gather all the relevant details to activate TCS for the organisation.
TCS Nature of Goods Master in Tally Accounting Software : TCS provides a ready list of TCS nature of Goods for each It deduction section and Payment Code. Create Nature of Goods Master, for the Goods Type applicable for your organisation. Fill up the relevant details of TCS Rate for respective types of collectee, Basis of Calculation, threshold limit etc, So, the TCS nature of Goods master will contain a subset of TCS Nature of Master list provided by Tally, with details of Rates and other info applicable for the organisation.
TCS details in Party Ledger Accounts in Tally Accounting Software : Set up the TCS related details through Configuration options & Advanced Configuration options applicable for the Party. To ensure that PAN is updated in Party master, you may print the list of Parties with no PAN. Check and Update / Rectify PAN. Higher Rate of TCS would be charged for Parities without PAN.
TCS Collection Voucher Entry in Tally Accounting Software
TCS Voucher Entry in Tally Accounting Software : In case of Sales of Goods, create Sales Voucher, entering details as usual. Select the relevant Nature of Goods from list, select TCS Ledger. TCS would be computation as per configuration options set considering threshold limit and Rate. The transaction would be reflected in Form 27EQ. If the Buyer deducts TDS in their payments to customers, then you may not charge TCS. Tally provides options to set Exemption of TCS in such cases.
TCS Challan Buyers Details entry in Tally Accounting Software : TCS collection is exempted where TDS is deposited by Buyer. In such case, enter the challan details later on (on getting Challan number from Buyer), before filing TCS Return.
TCS Deposit to Government in Tally Accounting Software
TCS Deposit Voucher Entry in Tally Accounting Software : Having deposited TCS, enter payment Voucher, Enter the relevant details in Stat Payment section. Print ITNS challan after entry.
TCS Interest / Late Fee/ Penalty Deposit Voucher Entry in Tally Accounting Software : Interest / Late Fee would be paid if Tax Deposit was not made in time. In some cases, Penalty may be imposed by Department. Prepare separate Voucher for such payments, if any. Create Payment Voucher, selecting the appropriate type of Payment (Interest / Late Fee/ Penalty)
TCS Deposit to Government : The collector has to deposit the Tax collected, penalty & Interest (for dues not deposited in in time) to the Government. The Tax may be deposited through printed challan generated at Bank Counter, or on line, through from I Tax Portal. On TCS deposit, a Bank Challan reference is generated, and a receipt is issued.
TCS Reports Printing in Tally Accounting Software Having deposited the TCS with Government, you may print TCs Reports, to track TCS outstanding and TCS reconciliation.
TCS Outstanding Report in Tally Accounting Software: This report shows the details of TCS collected but not yet deposited to Government. The contents of the report may be configured and filtered through various configuration options.
TCS Challan Reconciliationin Tally Accounting Software: This Repot shows the details of TCS deduction, TCS deposit Challan Reference number, to track proper TCS deposit and entry of Tax Deposit Challan Number in Statutory Reports and Returns.
TCS Challan Buyer details entry in Tally Accounting Software: It shows the list of Challan with details for specified Buyer & nature of Goods, to help Challan tracking and Tax deposit.
TCS Statutory Reports in Tally Accounting Software
TCS Form 27EQ in Tally Accounting Software : It shows the statistics of transactions at top under various heads for the specified period. You may drill down from each Item to get further details. This helps proper reconciliation, missing info, wrong info, unmatched info etc, and rectification & updation. Having all rectified and properly filled, view the final state of Form 27EQ, before filing to the I Tax portal
TCS Return Transaction Booking Tally Accounting Software: It shows the list of saved Returns for record and future reference.
TCS Return Filing with Government The report created by Tally cannot be filed with Government. Report in proper format be created through a Conversion utility, downloaded from the site (www.tin-nsdl.com).
Validation of TCS Report File : First, the TCS Challan File created by Tally is to validated through the FVU Utility, downloaded from site. FVU generates the validated file (Form 27A). Errors found, if any, are reported in Error File. Errors are to be rectified and the original file revalidated. Finally, the error free file is obtained.
Validated TCS Return Filing with Government : The E-TCS returns are also to be filed with NSDL at the various TIN-FCs. website. Submit the Form 27EQ (.txt format) from tally, alongwith Form 27A generated from the validation Utility.