TCS or Tax Collected at Source is the tax that vendors collect from their customers at the time of sale. The government has introduced a new provision under Section 206C (1H) of the Income Tax Act for collecting TCS on the Sale of Goods after October 1, 2020.
The new provision requires you to collect TCS if your turnover has exceeded Rs.10 crore in the last financial year and the invoice value of sale to a customer exceeds Rs.50 lakh in the current financial year.
The new TCS rates will be applicable only on the amount received after 1 October 2020. It is collected on the sale value which is greater than 50 Lakhs only.
The TCS rate to be collected is 0.1% but currently due to the COVID-19 pandemic, the rate has been reduced to 0.075% till 31 March 2021.
If the customer/buyer does not have a PAN card, then the applicable TCS will be 1%.
You will be able to create the TCS rates as you create your transaction. To configure:
Insight:TCS is calculated on the Total amount which is inclusive of taxes, shipping charges, discounts and adjustments.
Insight: Similarly, you will be able to create and apply them them while recording your bills in Zoho Books.
You will be able to view the TCS payable or receivable in the transaction’s journal and Form 27EQ.
You can view the journal details available below each transaction to view the TCS Receivable or Payable amount.
Zoho Books generates the Form 27EQ automatically which you can use while filing your TCS. To view this report:
Online accounting software
for small businesses.