OVERVIEW OF TAX COLLECTED AT SOURCE (TCS) IN MARG BOOKS
Tax Collected at Source (TCS) is a tax which the seller collects from the buyer at the time of selling the goods. The Government has added a New Sub Section (1H) under Section 206 C which means that a seller who is selling goods within India may require collecting TCS from the buyer.
With Marg ERP Software, the user can easily enable & collect TCS at the time of creating the Sale bill against the goods sold to different parties.
The user can mention in the software from which date the TCS must be calculated and at which condition it must be applicable i.e. when Party’s Sale crosses 50 lakhs.
If the turnover of the seller is greater than Rs. 10 crore for the previous financial year (FY) and sells goods exceeding Rs. 50 Lakhs with in India and along with it if the buyer has provided the PAN Card/ Aadhaar Card then the seller will collect 01% TCS on the bill amount from the buyer.
If the buyer does not provide a PAN Card/ Aadhaar Card then the seller will collect 1% TCS from the buyer.
This amendment will take effect from 1st October 2020.
PROCESS TO IMPLEMENT IN TAX COLLECTED AT SOURCE (TCS) SALE AND PURCHASE BILL
Firstly, click on ‘Settings’ icon.
A ‘Dashboard Settings’ window will appear.
In ‘Control Room’ option, the user will click on ‘Configure’.
A ‘Control Room’ window will appear.
The user will search ‘TCS’.
In ‘Enable TCS’ option, the user will select ‘Yes’.
Now click on ‘Configure’ button.
An ‘Enable TCS Configuration’ window will appear.
In ‘Effective From’ option, the user will select the date from when tcs needs to be applicable, by default date will already mentioned in it i.e. 01-04-2023.
In ‘TCS applicable on Purchase’ option, the user will select ‘Yes’ to enable tcs on purchase otherwise keep the option as ‘No’.
In ‘TCS applicable on Sale’ option, the user will select ‘Yes’ to enable tcs on sale otherwise keep the option as ‘No’.
In ‘Company turnover in last year’ option, It means that if the turnover of the customer crosses 50 lakhs then TCS will get calculated on it.
In ‘Party Sales Limit’, option the user will select the party sales limit on which bases tcs will get calculated on it.
Suppose set ‘1’.
In ‘With Pan’ option, This means that if the customer provides their PAN Card/ Aadhaar Card then 0.1% TCS will get collected. So, mention 0.075 here.