Challan Reconciliation for TCS

After printing the deposit challan, the details of the printed challan are entered through the Challan Reconcilliation button(F5). Detailed entry made are Bank challan Number, Challan Date, Bank Branch Code, Cheque number. Accept and save the reconciliation details.

Printing TCS Challan

In order to get TCS challan, click on print button after saving the payment voucher, the voucher printing dialogue box is activated. Then fill up general printing specifications and select 'yes' for Print as challan option.

Payment Voucher Creation of TCS

You can do it by using the TCS helper button, click on the button, TCS filter screen will appear, the details are to be filled up and then the payment voucher is to be created
Or else you have to debit TCS ledger and credit Bank Account for payment of TCS in payment voucher.

Sales Voucher for TCS

For TCS purpose, you have to go to sales voucher screen, in Invoice mode. Give the normal information there like party name, sales ledger, item name, etc. TCS computation screen displays details of TCS. You can change the rate by changing the configuration i.e. by setting 'yes' at the option 'Allow Alteration of TCS Rate' in the configuration screen.

Sales Ledger Creation for TCS

In order to create Sales Ledger go to Ledger Creation screen and fill it up, set 'yes' in the option TCS applicable.

Party Ledger Account for TCS

Go to Ledger Creation(Gateway of Tally -> Accounts Info. -> Ledger -> Create). At ledger creation or alteration screen of the party from whom TCS is collected. The following information has to be entered :

Is TCS applicable : Set this 'yes' for applicability of TCS.
TCS details screen will appear, enter the following there:
Buyer/Lessee: Select appropriate type from the list given.
Is Lower/No Collection Applicable: Set this as 'yes' if there is any exemption, orelse set it to 'no'.
Section Number : This is set to 206C by default.
TCS Lower Rate(%): Set it as per rate applicable.

Creation of TCS Ledger Account

First go to Ledger Creation screen(Gateway of Tally -> Accounts Info -> Ledger -> Create) and enter the following details:

Name : Enter the name of the ledger account to be opened.For example TCS on Timber Ledger.

Under : Ledger should be created under Duties and Taxes.

Type of Duty/Tax : Select TCS from the list given.

Nature of Good/Contracts/Licence/Lease : Select the nature from the list provided.You can view the details of the TCS rates from Gateway of tally -> Display -> Statutory Info -> TCS Nature of Goods.

Inventory values are affected : Set this as 'No'.

Configuration Set up for TCS

In order to set up configuration for TCS press F11 and then press F3. Set the option "Enable Tax Collected at Source(TCS)" and "Set /Alter TCS Details" as 'yes'. The company deductor/collector details sub screen will appear. Enter the following information there:

• Tax Assessment Number(TAN) : Enter the 10 digit TAN of the company, allotted by the Income Tax Department.
• Income Tax Circle/Ward : Enter the Tax Circle/Ward under which the company is being assessed.
• Deductor/Collector Type : Select the proper option from the given list.
  
• Name of the person responsible : Name of the official of the company who is responsible for collection and deposit of TCS, is to be given.
• Designation : The designation of the person whose named is mentioned in the previous field has to be entered.
  

Tax Collected at Source (TCS)

It is the tax collected by the seller from the purchaser for sale of certain goods/transactions mentioned under section 206C of the Income Tax Act, 1961. Some of these goods/activities are- mining and quarrying, tendu leaves, alchoholic liquor, timber, etc. TCS is to be submitted in a specified form within a week from the last day of the month, in which the tax was collected. Payment of tax to the government is to be made in specified branches of banks, authorized to collect tax.