Overview of Tax Collected at Source (TCS) in Marg Books

Process to Implement in Tax Collected at Source (TCS) Sale and Purchase Bill

Tax Collected at Source Apply on Sale Bill in Marg Books

OVERVIEW OF TAX COLLECTED AT SOURCE (TCS) IN MARG BOOKS

• Tax Collected at Source (TCS) is a tax that the seller collects from the buyer at the time of selling the goods. The Government has added a new 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 the Party’s Sale crosses 50 lakhs.

1. If the turnover of the seller exceeds ₹10 crore in the previous financial year (FY) and the seller sells goods exceeding ₹50 lakh to a buyer within India, and if the buyer has provided PAN/Aadhaar, then the seller is required to collect TCS at 0.1% on the bill amount. However, if the buyer fails to provide PAN/Aadhaar, TCS will be collected at 1%.
2. If the buyer does not provide a PAN Card/ Aadhaar Card then the seller will collect 1% TCS from the buyer.
3. 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’ button.

• 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.

• A 'Confirmation' window will appear.
• The user will click on 'Yes' to configure TCS.

An ‘Enable TCS Configuration’ window will appear.

1. In ‘Effective From’ option, the user will select the date from when TCS needs to be applicable.

2. In ‘Party Sales Limit’, option the user will select the party sales limit on which basis TCS will be calculated.

3. In ‘With Pan’ option, This means that if the users provide their PAN Card/ Aadhaar Card then 0.075% TCS will be collected. So, mention 0.075 here.

4. In ‘Without Pan’ option, If the user does not provide a PAN Card / Aadhaar Card then 1% TCS will be charged. So, mention 1% here.

• In ‘Responsible Person Details’ option, the user will select ‘Yes’.

• Now click on ‘Configure’ option.

• A ‘Responsible Person Details’ window will appear.
• The user will mention the concerned user details, who has enabled the TCS name, pan no., mobile no. etc.
• Click on ‘Save’.

• Now the user will press ‘ESC’ key.

• The user will click on ‘Save Changes’.

• Again press ‘ESC’ key.

• Now click on ‘OK’.

TAX COLLECTED AT SOURCE APPLY ON SALE BILL IN MARG BOOKS

• Suppose the user is applying TCS on a Sale Bill, so the user will create the sale bill as per the requirement, and at the time of saving a bill a ‘Confirmation’ window will appear.
•  The user will select the ‘Proceed’ button to apply TCS on the Sale Bill.

After following the above steps, the user can view TCS will get Implement in Marg Books.