Background - TCS (Tax Collection at Source) is newly introduced on Sale of Goods starting 1st October. This blog shows you how to enble and implement TCS in Tally.
TCS (Tax Collection at Source) for Sale of Goods has been introduced in the latest amendment in the Finance Bill, 2020. An amendment made to widen the scope of Taxes in India. All businesses with a turnover of INR 10 cr and more in the previous financial year are liable to TCS on Sale of Goods.
The Section 206C(1H) of the Income Tax Act, 1961, introduced by the Finance Act, 2020 is applicable from 1st October 2020. It is applicable on Sale of Goods exceeding INR 50 lakhs from a single buyer. It is applicable either at the time of payment or generation of the invoice whichever is done first.
This is about TCS and its applicability. Now the question arises is How will Tally support businesses in TCS? To understand this, continue reading.
This is how you can enable TCS in Tally latest release 6.6.3
- Go to Gateway to Tally screen.
- Press F11 Features
- Next Select Statutory and Taxation Tab
- In the Company Operations Alteration Section, enable Tax Collect at Source (TCS) to ‘Yes’.
- Set/alter TCS details to ‘yes’.
- A Company operations Alteration screen will open. Press F12.
- Now set Yes to enable surcharge and cess.
- Now save the settings by pressing CTRL + A
- Now, fill in the TAN registration number, Tax Deduction and Collection Number (TAN)
- Select the Collector type, enter the Collector branch.
- Enable the Set/alter details of the person responsible. It will show the Responsible Person Details screen. Enter the necessary details
- After filling the details, press Enter.
- Set Ignore IT Exemption Limit to - No; if you want the IT exemption limit or Yes; if you want IT exemption limit.
- Set ‘Provide Surcharge and cess details’ to ‘Yes’. This will appear only if you have enabled option to Surcharge and Cess details for TCS.
- Enter all details for each collectee status. Now enter the required surcharge slab details with the applicable date
- Save this data by pressing CTRL + A.
Follow the steps mentioned above to record TCS in your Tally. Also, make sure you have the latest version of Tally so that your Tally has easily complied with the present Statutory changes.
The steps mentioned above are for Tally 6.6.3, which is currently the latest release of Tally. Thus before following the above mentioned steps, make sure your Tally is of the above stated version. If not, you can update your Tally. To update Tally, you need to have a valid TSS (Tally Software Service). TSS can be renewed by paying a yearly fee. Other than Tally updates, TSS provides other services like Data sync, etc.