Search Knowledge Base Articles

TCS in TallyPrime

TCS (Tax Collected at Source) is the tax that a seller collects from the buyer during the sale of specific goods under provision 206C, or any other goods on the basis of realisation. TallyPrime not only supports the latest budget changes for TCS but also provides you with a comprehensive TCS solution for your business needs. You now have the flexibility to calculate TCS either after receiving the payment or during billing.

If you are a seller of goods such as timber wood, tendu leaves, scrap, and so on, then you have to collect TCS at the time of sale. However, as per the latest budget changes, TCS will be charged for other goods as well when the value of sales or receipt crosses Rs 50 lakhs for a particular party. This is applicable only for sellers whose annual income has exceeded Rs 10 crore in the previous financial year. TallyPrime provides you with the option to track the threshold limit for a party. TCS will be automatically calculated when the sales exceeds the threshold limit (Rs 50 lakhs, for instance) for the party across transactions.

You now have the choice to calculate TCS on either realisation/receipt of the invoice value or directly in the invoice (accrual method), depending on your business practice. If you choose accrual, then you will collect TCS while billing the customers. If you choose realisation, then you will collect TCS on receipt of the invoice value. TallyPrime provides you with the flexibility to apply either method of calculation as per the Nature of Goods. Once you have selected the basis of calculation, it will be applied to all your transactions under that particular Nature of Goods. For instance, you can set TCS calculation on accrual for the sale of goods such as luxury cars or timber wood, and on realisation for any other goods. Accordingly, TallyPrime will keep aggregating the values for each party across transactions and calculate TCS once the aggregate amount crosses the threshold limit for a party.

Apart from recording transactions based on realisation and accrual, you can also calculate TCS on advance receipt and record TCS-exempt transactions for government-listed buyers and buyers deducting TDS. You can view and track the status of your TCS-related transactions in Form 27EQ in TallyPrime, and identify any incomplete information or mismatch in details. Once you verify the details, you can export the details as a text file and proceed for filing TCS returns.

What’s more, with TallyPrime you can easily configure TCS in either the stock items or in the sales ledger, which will help you calculate TCS with great ease and accuracy. If you have hundreds or thousands of stock items, then you don’t have to configure TCS for each stock item. You can just configure TCS in the sales ledger, and the TCS amount will be calculated in the transaction. For some reason, if you do not want to calculate TCS in the transaction, then you can set TCS to Not applicable in the stock items or sales ledger.

Calculate TCS on Realisation

TallyPrime provides you with the choice to calculate TCS on either realisation of the invoice value or directly in the invoice, depending on your business practice. If you choose realisation, then you will collect TCS after receiving the payment from the buyer. You can apply the realisation method of calculation in the relevant Nature of Goods, and it will be applied to all your transactions under that particular Nature of Goods. TallyPrime will aggregate the values for each party across transactions and calculate TCS once the aggregate amount crosses the threshold limit for a party.

Set up tax calculation and threshold limit
  1. Press Alt+G (GoTo) > Create Master/Alter Master > TCS Nature of Goods, and select the relevant Nature of Goods.
  2. Enter relevant details such as the name of the Nature of Goods, Section, Payment code, Threshold/exemption limit, and applicable TCS rates. 
    Note: You can set TCS rates for different time periods by pressing Ctrl+I (More Details) > TCS Details (History).
  3. Configure the following options:
    1. Tax calculation based on realisation – Set this option to Yes to calculate TCS on realisation in the transactions involving this Nature of Goods.
    2. Calculate tax on value exceeding Exemption Limit – Set this option to Yes to calculate TCS on the amount exceeding the threshold limit, as recommended by the latest department rules. If you set this option to No, then TCS will be calculated from Rupee 1.
      Illustration: Let us consider the Threshold/Exemption Limit as Rs 50 lakhs. Now if the value of sales is Rupees 57 lakhs, then the Taxable Value will be Rs 7 lakhs if this option is set to Yes. However, if this option is set to No, then the entire amount of Rs 57 lakhs will be taxable. 
      realisation in nature of goods
  4. Press Ctrl+A to accept, as always.
Record TCS receipt entry
  1. Gateway of Tally > Vouchers > press F6 (Receipt).
    Alternatively, press Alt+G (Go To) > Create Voucher > press F6 (Receipt).
  2. Select the Party A/c name and Sales ledger. 
  3. Select the Nature of Goods in the TCS Allocation Details sub-screen:

  4. Select the item and the TCS duty ledger. 

    You can see that TCS was not calculated, as the invoice amount (Rs 35,00,000) was less than the threshold limit (Rs 50,00,000). However, if you pass a subsequent transaction with the same party that exceeds the overall threshold limit, then TCS will be calculated.

    You can see that that TCS was calculated on the Amount exceeding the overall threshold limit. The total amount for TCS consideration is Rs 60,00,000 (Rs 35,00,000 + Rs 25,00,000), which exceeds the threshold limit by Rs 10,00,000. Thereby, TCS will amount to Rs 1,000 (at 0.1%).
  5. Press Ctrl+A to accept, as always.
View transaction in Form 27 EQ
  • Gateway of Tally > Display More Reports > Statutory Reports > TCS Reports > Form 27EQ. 
    Alternatively, press Alt+G (Go To) > type or select Form 27EQ> and press Enter.


The excess amount (Rs 10,00,000) will appear in the Collection at Normal Rate section, while the rest of the amount will appear in the Under Exemption Limit section.

Calculate TCS on Accrual

If you choose the accrual method of calculation, then you will collect TCS while billing the customers. TallyPrime provides you with the option to configure the accrual method for the relevant Nature of Goods. Once you have selected the accrual method, it will be applied to all your transactions under that particular Nature of Goods.

Set up tax calculation and threshold limit
  1. Press Alt+G (GoTo) > Create Master/Alter Master > TCS Nature of Goods, and select the relevant Nature of Goods.
  2. Enter relevant details such as the name of the Nature of Goods, Section, Payment code, Threshold/exemption limit, and applicable TCS rates. 
    Note: You can set TCS rates for different time periods by pressing Ctrl+I (More Details) > TCS Details (History).
  3. Configure the following options:
    1. Tax calculation based on realisation – Set this option to No to calculate TCS on accrual in the transactions involving this Nature of Goods.
    2. Calculate tax on value exceeding Exemption Limit – Set this option to Yes to calculate TCS on the amount exceeding the threshold limit, as recommended by the latest department rules. If you set this option to No, then TCS will be calculated from Rupee 1.
  4. Press Ctrl+A to accept, as always.
Record TCS sales entry
  1. Gateway of Tally > Vouchers > press F8 (Sales).
    Alternatively, press Alt+G (Go To) > Create Voucher > press F8 (Sales)
  2. Select the Party A/c name and Sales ledger. 
  3. Select the Nature of Goods in the TCS Allocation Details sub-screen:

  4. Select the item and the TCS duty ledger.

    You can see that TCS was calculated on the Amount exceeding the overall threshold limit. The total amount for TCS consideration is Rs 1,20,00,000, which exceeds the threshold limit (of 50,00,000) by Rs 70,00,000. Thereby, TCS will amount to Rs 7000 (at 0.1%).
  5. Press Ctrl+A to accept, as always.
View transaction in Form 27EQ
  • Gateway of Tally > Display More Reports > Statutory Reports > TCS Reports > Form 27EQ. 
    Alternatively, press Alt+G (Go To) > type or select Form 27EQ> and press Enter.

You can see that the excess amount (Rs 70,00,000) appears in the Collection at Normal Rate section, while the rest of the amount appears in the Under Exemption Limit section.

Override the Method of Calculation from Realisation to Accrual

You may have set the method of calculation as realisation in the Nature of Goods, but for a particular party you may want to override this calculation to accrual. Accordingly, TallyPrime provides you with the flexibility to change the method of calculation during the transaction or in the party master.

Override in the party master

  1. Press Alt+G (GoTo) > Alter Master > Ledger, and select the relevant party.
  2. Set the option Use advanced configuration for TCS to Yes. The Advanced TCS Configurations screen will appear.
  3. Set the option Override Tax calculation of realisation-based Nature of Goods to Yes/No, as per your requirement.

    If you select Yes, then the following sub-screen will appear.
  4. Select the Nature of Goods that you want to override from realisation to accrual.
  5. Press Ctrl+A to accept, as always.
    Now TCS will be calculated in the sales transaction even if realisation is selected as the method of calculation in the Nature of Goods.

Override in the transaction

  1. Open the TCS Allocation Details screen from the sales/receipt voucher.
  2. Press F12 (Configure) > Override Tax calculation of realisation-based Nature of Goods > Yes.
  3. Set the option Based on Realisation to Yes/No, as per your requirement. This will override the original method of TCS calculation set in the Nature of Goods.
  4. Press Ctrl+A to accept, as always.

Calculate TCS on Advance Receipt

When a buyer makes an advance payment for future sales, then TCS has to be charged on the advance amount. Accordingly, you can use TallyPrime to issue a receipt voucher to the buyer by charging TCS on the advance amount. TCS will be applied once the receipt amount crosses the threshold limit.

  1. Gateway of Tally > Vouchers > press F6 (Receipt).
    Alternatively, press Alt+G (Go To) > Create Voucher > press F6 (Receipt).
  2. Select the Party A/c name and Sales ledger.

  3. Select the Nature of Goods in the TCS Allocation Details sub-screen. You can configure the Nature of Goods to calculate TCS either on receipt or accrual, as per your business practice, while keeping the department guidelines in mind.

    If the TCS duty ledger is not selected, then TCS Allocation Details will appear after the voucher total.

  4. Select the item and the TCS duty ledger. 

    You can see that TCS was calculated on the Amount exceeding the overall threshold limit. The total amount for TCS consideration is Rs 75,00,000, which exceeds the threshold limit by Rs 25,00,000. Thereby, TCS will amount to Rs 2500 (at 0.1%).
  5. Press Ctrl+A to accept, as always.

TCS Exemption for Government-Listed Parties

Government-listed buyers are exempt from TCS payment. This includes entities like State government, Central government, embassies, High Commissions, and so on. If you have any government-listed buyers, then TallyPrime will help you in easily configuring the Buyer/Lessee Type in the party masters. This will ensure that the tax component is calculated appropriately in the transactions with such parties.

Configure party master
  1. Press Alt+G (GoTo) > Alter Master > Ledger, and select the relevant party.
  2. Select the Buyer/Lessee type as Government.
  3. Set the option Use advanced configuration for TCS to Yes. The Advanced TCS Configurations screen will appear.
  4. Set the option Set/alter zero/lower rate for collection to Yes. The Zero/Lower Collection Details screen will appear.
  5. Select the Provision as 206C(1H) – Collectees Eligible for Exemption.
  6. Press Ctrl+A to accept, as always.
Record transaction

If you are calculating TCS on accrual, then record a sales voucher for this transaction. If you are choosing TCS on realisation, then record a receipt voucher.

  1. Gateway of Tally > Vouchers > press F8 (Sales).
    Alternatively, press Alt+G (Go To) > Create Voucher > press F8 (Sales)
  2. Select the Party A/c name and Sales ledger. 
  3. Select the Nature of Goods in the TCS Allocation Details sub-screen:

  4. Select the item and the TCS duty ledger. 

    You can see that TCS was not calculated, even though the Amount exceeds the threshold limit (50,00,000) set for the Nature of Goods
  5. Press Ctrl+A to accept, as always.
View transaction in Form 27 EQ
  • Gateway of Tally > Display More Reports > Statutory Reports > TCS Reports > Form 27EQ. 
    Alternatively, press Alt+G (Go To) > type or select Form 27EQ> and press Enter.

You can see that the transaction and the excess amount (72,00,000 – 50,00,000 = 22,00,000) appears in the Collection at Normal Rate section, while the rest of the amount appears in the Under Exemption Limit section.

TCS Exemption for Buyers Deducting TDS

If your business has buyers who deduct TDS while making payments, then you don’t have to collect TCS from such buyers. TallyPrime provides you with the flexibility to set the exemption for such buyers during the transaction. If you are calculating TCS on accrual, then record a sales voucher for this transaction. If you are choosing TCS on realisation, then record a receipt voucher.

  1. Gateway of Tally > Vouchers > press F8 (Sales).
    Alternatively, press Alt+G (Go To) > Create Voucher > press F8 (Sales).
  2. Select the Party A/c name and Sales ledger. 
  3. Select the Nature of Goods in the TCS Allocation Details sub-screen, and press F12 (Configure). The Configuration sub-screen will appear.

  4. Set the option Specify exemption from TCS for buyer-deductible TCS to Yes. The TCS Allocation Details sub-screen will appear.

  5. Select the item and the TCS duty ledger. 

    You can see that TCS was not calculated, even though the Amount exceeds the threshold limit (50,00,000) set for the Nature of Goods.
  6. Press Ctrl+A to accept, as always.

Update Challan Details of Buyers

If the buyer is going to deduct TDS while making the payment, then the transaction will be exempted from TCS. Further, when the buyer pays this TDS amount to the government, a challan no. will be issued. While filing TCS returns, you have to provide this challan no. and date against which TDS was paid. 

The challan details details won’t have to be filled at the transaction level in TallyPrime, as these details might not be available immediately. However, you can fill these details later, whenever they are available, by going to the TDS Challan Details of Buyer report. You can access this report separately under TCS reports and also from Form 27 EQ.

  1. Press Alt+G (GoTo) > TDS Challan Details of Buyer.
    Alternatively, you can go to Gateway of Tally > Display More Reports > Statutory Reports > TCS Reports > TDS Challan Details of Buyer.
    You can also view this report under Form 27 EQ > Uncertain Transactions > Challan details are not available under Buyer Deductable TDS Entries.
  2. Select the party and press Alt+S (Update Details).
  3. Enter the Challan Number and Challan Date in the Challan Details sub-screen.
  4. Press Ctrl+A to accept, as always.
    The Challan Details will be updated and the entry will move out of this report.

Update PAN of Buyers

TCS will be calculated at a higher rate (1% instead of 0.1%) when the PAN of a buyer is not available, and the transactions will appear in the Collection at Higher Rate section in Form 27EQ. With TallyPrime, you can easily cross-check the list of buyers without PAN and update the details if available. TCS will be recalculated and the entries will move to the Collection at Normal Rate section in Form 27EQ.

  1. Press Alt+G (GoTo) > TCS Reports > Ledgers Without PAN.
    Alternatively, you can go to Gateway of Tally > Display More Reports > Statutory Reports > TCS Reports > Ledgers Without PAN.
    You can also view this report under Form 27 EQ > Uncertain Transactions > PAN not available for party under Party Master.
  2. Enter the PAN and other details.

    If you go through Uncertain Transactions > PAN not available for party, then the following screen will appear:
  3. Press Ctrl+A to accept, as always.
    The PAN details will be updated and the entry will move out of this report.

Payment of TCS to Government

TallyPrime will help you in easily accounting for TCS payments made to the department. You can record such payments using a payment voucher. You can also record the payment of late fee for TCS, in case the returns were filed after the due date. Further, the delayed payment of TCS might attract interests and penalties, and you can easily record such payments in TallyPrime. While recording the payment, you only have to select the Penalty or Late Fee ledger grouped under Indirect Expenses.

Record Payment of TCS

You can record a payment voucher to account for the TCS on payment made to the department.

  1. Gateway of Tally > Vouchers > press F5 (Payment).
    Alternatively, press Alt+G (Go To) > Create Voucher > press F5 (Payment).
  2. Press Ctrl+F (Autofill) and specify the following details:
    1. Select Stat Payment as the Type of transaction.
    2. Select TCS as the Tax Type and enter other details as the Period From, Collected Till Date, Section, and Nature of Goods.
    3. Select the relevant Collectee Status and Residential Status.
    4. Select the Cash/Bank ledger.

      The Payment invoice will be automatically filled with the relevant details, as shown below:
  3. Accept the screen. As always, you can press Ctrl+A to save.
To print ITNS challan from the payment voucher 
  1. Press Pg Up > Alt+P (Print).
  2. Set the option Print as TCS Challan to Yes and enter the Filing Date.
  3. Press Ctrl+A to print the ITNS Challan.

 

Payment of Late Fee for TCS and TDS

With TallyPrime, you can also record the payment of late fee for TCS, in case the returns were filed after the due date.

  1. Gateway of Tally > Vouchers > press F5 (Payment).
    Alternatively, press Alt+G (Go To) > Create Voucher > press F5 (Payment).
  2. Select cash or bank ledger in the Account field.
  3. Select the TDS/TCS tax ledgers, and the relevant nature of payments/nature of goods.
  4. Select the Late Fee ledger grouped under Indirect Expenses.
  5. Select Late Fee from the list of payment types.
  6. Enter the amount. The late payment voucher will appear as shown below:
  7. Accept the screen. As always, you can press Ctrl+A to save.

 

Payment of Interest and Penalty

The delayed payment of TCS might attract interests and penalties, and you can easily record such payments in TallyPrime.

  1. Gateway of Tally > Vouchers > press F5 (Payment).
    Alternatively, press Alt+G (Go To) > Create Voucher > press F5 (Payment).
  2. Select cash or bank ledger in the Account field and select the interest ledger grouped under Indirect Expenses.
  3. Select Interest from the from the list of payment types and enter the amount.
  4. Select the penalty ledger grouped under Indirect Expenses.
  5. Select Penalty from the from the list of payment types and enter the amount.
  6. Accept the screen. As always, you can press Ctrl+A to save.

Generate TCS Returns

With TallyPrime you can view and track the status of your TCS-related transactions in Form 27EQ, and identify any incomplete information or mismatch in details. Once you verify the details, you can export the details as a text file and proceed for filing TCS returns. Additionally, the TCS feature in TallyPrime comes with reports like TCS Outstandings and Challan Reconciliation. The TCS Outstandings report will help you view the outstanding TCS amount based on the party or the nature of goods. You can use the Challan Reconciliation report to enter the challan details for payment transactions.

TCS Outstanding Report

You can view all the pending TCS payments for each nature of goods or party in the TCS Outstanding report.

  • Gateway of Tally > Display More Reports > Statutory Reports > TCS Reports > TCS Outstandings.
    Alternatively, press Alt+G (Go To) > type or select TCS Outstandings > and press Enter.

    A brief explanation about the fields in the report is given below:

Field Name

Description

Nature of Goods

Displays the name of the nature of goods, contracts, license or lease as specified in the duty ledger that was used in recording the sales entry where tax was collected.

Company

Displays the total amount of tax collected from parties of Company Resident and Company Non-Resident buyer or lessee type for whom sale transactions were recorded.

Non-Company

Displays the total amount of tax collected from parties of Individual/HUF – Resident and Individual/HUF – Non Resident buyer or lessee type for whom sale transactions were recorded.

Total Pending

Displays the total outstanding amount of all TCS pending payment to be made.
Actions
  • Party-wise information: To view details of the transactions for each party, press F5 (Party-wise).
  • Resident Type: To view the resident type details, press Ctrl+B (Basis of Values) > Resident Type > Resident. You can select different resident types to view and compare the effect on your report values.
  • Change View: To display a report in different views with additional details or for a specific period, press Ctrl+H (Change View). You can also view other reports related to the current report.
  • Nature of Goods: To view the transaction details of each nature of goods, select the required nature of payment.
  • Range of Bills: To view the Range of Bills Type, press Ctrl+B (Basis of Values) > Range of Bills > All Bills. You can select different Range of Bills Type to view and compare the effect on your report values.

    A brief explanation of the fields in the report is given below:

Field Name

Description

Date

Displays the date of recording payment, journal or purchase voucher.

Ref. No.

Displays the reference number entered in the payment, journal or purchase voucher.

Party’s Name

Displays the party name from where TCS has been collected, and for which the payment is yet to be made.

Opening Amount

Displays the opening amount of TCS.

Pending Amount

Displays the pending amount of payment to be made to the government.

Due On

Displays the last date of payment.

Overdue By Days

Displays the number of days passed after the due date.

Challan Reconciliation

TCS paid to the government have to be accompanied with ITNS 281 challan. You can generate this from the payment voucher and enter the challan details in the Challan Reconciliation report.

  1. Gateway of Tally > Display More Reports > Statutory Reports > TCS Reports > Challan Reconciliation.
    Alternatively, press Alt+G (Go To) > type or select TCS Challan Reconciliation> and press Enter.
  2. Press Ctrl+B (Basis of Values) > Show All Challan Types > Yes. Press Esc to view the default values.
  3. Press Alt+R (Reconcile).
  4. Enter the Challan No. and Challan Date if required.

Note: As per NSDL department file validation tool, challan number and challan date are not mandatory. In case of online TCS duty payment, you can provide the challan number and challan date, or leave the fields blank, and validate the file successfully.

Form 27EQ

The Form 27EQ report in Tallyprime will help you in filing accurate returns.

  • Gateway of Tally > Display More Reports > Statutory Reports > TCS Reports > Form 27EQ.
    Alternatively, press Alt+G (Go To) > type or select Form 27EQ > and press Enter.

    The Total Vouchers displays the total number of transactions for a period, which are categorised as Included in return, Not Relevant in this Return, and Uncertain Transactions (Corrections needed). You can drill down to view the Statistics report, which comprises voucher types with the corresponding voucher count.

Transactions Included in Form 27 EQ

This displays all the vouchers that comply with the requirements for filing the returns, in terms of the details available in the masters. These vouchers will be a part of TCS form as applicable.

  1. Gateway of Tally > Display More Reports > Statutory Reports > TCS Reports > Form 27 EQ.
    Alternatively, press Alt+G (Go To) > type or select Form 27 EQ> and press Enter.
  2. Drill down from the Included in return section. The Form 27 EQ – Included in returns screen appears.
Description
  • Booking Voucher: Displays the count of booking vouchers that are recorded without TCS deduction to book the expenses.
  • Booking with Collection Voucher: Displays the count of booking vouchers that are recorded with TCS collection details.
  • Collection Voucher: Displays the count of all the collection entries passed during the report period.
  • Advance Receipt (for TallyPrime Release 1.1.3 and earlier): Displays the count of all the advanced receipts made from the party against the service that will be provided in the future. 
    For TallyPrime Release 1.1.4 and later: The advance receipts will appear in either Booking or Booking with Collection sections, based on the TCS ledger availability.
  • Reversals: Displays the count of all the entries recorded for TCS reversal.
  • Overridden by User: Displays the count of the TCS vouchers that were recorded and saved by overwriting the pre-defined tax details.

 

Not Relevant in this Return

  1. Gateway of Tally > Display More Reports > Statutory Reports > TCS Reports > Form 27 EQ.
    Alternatively, press Alt+G (Go To) > type or select Form 27 EQ> and press Enter.
  2. Drill down from Not Relevant in this Return. The Form 27 EQ – Not Relevant in this Return screen appears as shown below:
  3. Drill down from the the category or voucher type.
    The Form 27 EQ – Not Relevant in this Return screen will display the list of excluded vouchers for the selected voucher type. You can drill down to the required transaction to alter or view more details.

Uncertain Transactions of Form 27 EQ

This displays the count of all vouchers with insufficient information. These exceptions can either be master-related or transaction-related.

In this section

View Uncertain Transactions

  • Gateway of Tally > Display More Reports > Statutory Reports > TCS Reports > Form 27 EQ.
    Alternatively, press Alt+G (Go To) > type or select Form 27 EQ> and press Enter.

Master Related Exceptions

Sales and Stock Item Master

Unable to Determine TCS applicability for ledgers or stock items: This exception occurs when the sales/income ledger credited in the transaction, or the stock item selected, has not been tagged to a specific TCS Nature of Goods. Select the appropriate TCS Nature of Goods to resolve this exception.

Party Master

Unable to determine collectee type for party: This exception occurs when the collectee type of the party ledger is set to undefined. Select a collectee type to resolve this exception.

To set the collectee type

  1. Drill down from Unable to determine collectee type for party.
  2. Press Spacebar to select the Name of the Ledger.
  3. Press Ctrl+F4 (Collectee Type) and select the required collectee type.

PAN not available for party: This exception occurs when the selected party ledger has been enabled for TCS, but PAN has not been specified. You need to specify the PAN, and the applicability of PAN or the status of PAN application for the party. To enter the PAN details:

  1. Drill down from PAN not available for the Party.
  2. Enter the PAN of the party and applicability, if PAN is available. Otherwise, enter one of the terms given below, based on the corresponding reason:
    • PANAPPLIED – If the party has given a declaration stating that he/she has applied for PAN, but are yet to receive the same.
    • PANINVALID – If the PAN format provided by the party is incorrect.
    • PANNOTAVBL – If the party has not given any declaration or PAN number.

Notification is not available for zero or lower rate: This exception occurs when a lower rate or zero rate deduction is recorded for a transaction, and the corresponding notification number is not defined for the party/expense ledger. You can resolve this exception by specifying the notification details.

You can drill down to view the party ledgers that have been used to record the zero-rated/lower-rated TCS entries. You can identify the parties for which lower deduction/zero rate is applicable, select the relevant TCS Category, and provide the exemption notification number, applicability period, and the rate.

Duty Master

Unable to determine TCS applicability for duty ledgers: This exception occurs when the TCS duty ledger has not been classified under a TCS Category. Select a specific TCS Nature of Payment of TCS duty ledger to resolve this exception.

  1. Drill down from Unable to determine TCS applicability of ledgers.
  2. Select the Default Nature of Goods. You can view the Duty ledgers for which TCS Nature of Goods have not been defined.
  3. Select the required stock items and press Alt+B (Nature of Goods) to set the Nature of Goods.

Nature of Goods

Unable to determine the tax rate for nature of goods: This exception occurs when the TCS nature of goods is not zero rated and the rate of tax is not defined. Enter the tax rate to resolve this exception.

  1. Drill down from Unable to determine the tax rate for nature of goods.
  2. Enter the Rate for the TCS nature of goods or set the option Is Zero Rated to Yes.
  3. Accept the screen. As always, you can press Ctrl+A to save.

Transactions Related Exceptions

Mismatch in Nature of Goods

Unable to determine TCS category in transaction: This exception occurs when TCS nature of goods is not defined for the sales ledger either in the ledger master or transaction.

  1. Drill down from Unable to determine TCS category in transaction.
  2. Drill down from the transaction.
  3. Go to the amount entered for the sales ledger and press Enter.
  4. Select the Nature of Goods.
  5. Press Ctrl+A to accept the sales invoice.

Booking & Booking with Collection Entries

No link is available with booking and booking with collection voucher: This exception occurs when the TCS category set for the sales/income ledger is not the same as the TCS category selected during voucher entry. Set the appropriate nature of goods to resolve this exception.

To resolve the exception:

  1. Drill down from No link is available with collection voucher.
  2. Select the transaction and press Alt+L (Link All).

Note: If the TCS Category for the ledger is set to Any and a TCS Category is specified during voucher entry, then this exception will not occur.

Unable to determine collectee details in cash transactions: This exception occurs for TCS cash sales.

To resolve the exception:

  1. Drill down from Unable to determine collectee details in cash transactions.
  2. Select the required party name. The Collectee Type and PAN appear as defined for the ledger.
    If the details are not defined in the ledger, then select the Collectee Type and enter the PAN.
  3. Accept the screen. As always, you can press Ctrl+A to save.

Collection Entries

TCS collected but not linked with sales voucher: This exception occurs when the sales bill is not selected for the party ledger in TCS journal voucher.

  1. Drill down from TCS collected but not linked with sales voucher.
  2. Select the journal voucher and press Enter.
  3. Press Spacebar to select the required booking vouchers.
  4. Press Alt+R (Auto Fill) or Alt+L (Full) or Alt+V (Partial), as required, and enter the amount in Link to Collection.
  5. Accept the screen. As always, you can press Ctrl+A to save.

Overridden Entries

Transactions accepted with conflicts: This exception occurs when the TCS nature of goods defined for the sales ledger and selected in the invoice (by enabling the option Allow modification of Tax Details for TCS in sales invoice configuration) are different, and the invoice is accepted by pressing O to override the tax details.

  1. Drill down from Transactions accepted with conflicts.
  2. Press Spacebar to select the transaction.
  3. Press Alt+J (Accept as is).
  4. Accept the screen. As always, you can press Ctrl+A to save.

 

Save, Recompute, Overwrite Form 27EQ

You can save the changes after resolving the required exceptions in Form 27EQ.

  • Gateway of Tally > Display More Reports > Statutory Reports > TCS Reports > Form 27 EQ.
    Alternatively, press Alt+G (Go To) > type or select Form 27 EQ> and press Enter.

In this section

Save the return

  1. Press Alt+B (Save Return). If all the exceptions are resolved, and the count of uncertain transactions is zero, then the following message will appear:
  2. Click Yes to save the return. If there are unresolved exceptions, then then the following message will appear:
    Did you find this article useful?

Related Articles