TCS in Purchase Invoice

What is TCS?

'Tax collected at Source' is abbreviated as TCS. It was applicable for Sale of Goods for items like Tendu leaf, motor Vehicles, Scrap..etc. From 1st October 2020,
TCS will be applicable on 'Sale of Goods' for all items.
 
Both TDS & TCS are Part of Income Tax (not related to GST). TDS (Tax Deducted at Source), was implemented long back and it is applicable for Salary, Winning from Prize money and all kinds of service incomes.

The TDS will be deducted & paid by the payer. TDS deducted from the payer's invoice by the business who receives the service will be filed to the government.

But TCS will be collected & paid by the PAYEE. (Payer - Person who is receiving the goods/service, Payee - Person who is providing the goods/service and is Income to the person)

Below are the steps to easily make a TCS entry for a purchase

#TCS for a purchase entry

Step 1 : In the left  of the purchase entry screen, click "more options" 

Step 2 : Scroll down to find the "TCS amount" row. Enter the TCS amount in the column and continue to put the purchase entry. Once saved, a journal entry will be automatically passed for the TCS value. (TCS is exclusive of the invoice amount)

#Verification in reports

Step 1 : Navigate to GOFRUGAL AccountsEasy module under Accounts

Step 2 : In the AccountsEasy screen, navigate to Ledger report. (Can also be viewed in other reports like day book, journal register etc...)

Step 3: Choose the supplier/ party from the ledger list

Step 4 : Drill down for the required period by clicking enter

Step 5: In the below screen we can view the automatic TCS journal entry posted under the supplier ledger

#TCS Outstanding report and clearance in AccountsEasy

To view the outstanding report  :  Go to Reports -> outstanding -> supplier outstanding report -> choose the customer ledger -> Drill down the respective month

In the below image, you can view the sales bill of Rs 71,250 and it's TDS journal entry

To clear the outstanding  : Go to Transactions -> bill wise receipts ( Can also be adjusted in single entry mode receipt screen)

In the below image you can notice the sales bill of Rs 71,250 and its TDS journal entry of Rs 53.44. In this screen we can adjust the bills

https://www.youtube.com/watch?v=n7OISqS8buE - view this youtube to use bill wise receipt entry screen

https://www.youtube.com/watch?v=Pu8CkKFYk5o -  view this youtube to use single entry mode receipt screen

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