From October 1, 2020, our Government has introduced a new provision for collecting TCS for the sale of goods and depositing the same to the Government. These provisions are given in Section 206C (1H) of the Income Tax Act and here we are discussing this provision in a very simple language with some practical examples so that the Tax payers can understand the New provisions and follow them easily since it is a new provision.
CU59 V/s Dhyey Plugin
| CU59 | Dhyey Plug-in | |
| Contract Amount | Calculation BUG | Working Fine |
| PAN Based | Not Given Feature | Added Feature |
TCS Setup:
- First, Set TCS Threshold Amount Limit, Contract Amount in below Setup.
(Currently we set TCS Threshold Amount: 1,00,000.00)
- We Click on Calc. Over & Above Threshold for TCS (206C).
- If we click on PAN Based, System will calculate TCS based on Multiple Customer with Same PAN number.
NOD/NOC: Left Blank Threshold Overlook:
Sales Invoice: Statistics
Example Scenario Explanation…
| CU59 TCS- 206C | |||||
| Doc No | Base Amount | GST | Amount including GST | Threshold Limit | TCS Status |
| 1 | 50,000.00 | 9,000.00 | 59,000.00 | 100,000.00 | Not Calculated TCS |
| 2 | 50,000.00 | 9,000.00 | 59,000.00 | 100,000.00 | TCS Calculated As per Below Conditions |
Doc No: 1 Can’t calculate TCS Because of Amount including GST under the Threshold Limit (Rs. 1,00,000).
Doc No: 2 Calculate TCS based on below formula
TCS Based Amount= Threshold Limit – (Doc No: 1 Amount including GST + Doc No: 2 Amount including GST)
18,000 = 1,00,000.00 – (59,000.00 + 59,000.00)
Sales Invoice: Preview Posting
Based on above analysis, System will generate below entries while posting Doc No 2
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