Every person, who grants lease or a license or enters into a contract or otherwise transfers any right or interest (in any parking lot or toll plaza or mine or quarry) either in whole or in part to another person for the purpose of business, is liable to collect tax at source from the licensee or lessee of any such license, contract or lease at the prescribed percentage.
Go to Gateway of Tally > Accounts Info > Ledgers > Create
In the Ledger Creation screen, enter in the Name field.
In the Under field, select the Duties & Taxes from List of Groups.
Select TCS from Types of Duty/Tax in the Type of Duty/Tax field.
In the Nature of Goods/ Contract/License/Lease field select Contractors/Licensee/Lease Relating to Parking Lots from the List of TCS Types.
Press Enter to accept and save.
Note: It is recommended to create separate TCS ledgers with appropriate Nature of Goods/Contract/License/lease.
Go to Gateway of Tally > Accounts Info > Ledgers > Create
In the Ledger Creation screen, enter Prakash Enterprises in the Name field.
In the Under field, select Sundry Debtors option from the List of Groups.
Set Maintain balances bill-by-bill? to Yes. Enter details in the Default Credit Period, if applicable. By default, the Inventory Values are affected? field is set to No.
Set Is TCS Applicable? to Yes.
In the TCS Details screen:
• In Buyer/Lessee field select Association of Persons from the List of Collectee Types.
• Set Is Lower/No Collection Applicable? to No.
• Set Ignore Surcharge Exemption Limit to No.
Enter party Mailing Details and Tax Information.
Press Enter to accept and save.
Go to Gateway of Tally > Accounts Info > Ledgers > Create
In the Ledger Creation screen, enter Parking Lot Charges in the Name field.
In the Under field, select the Direct Incomes from List of Groups.
Set Inventory Values are affected? to No.
Set Used in VAT Returns to No.
Set Use for Assessable Value Calculation to No
Press Enter to accept and save.
Go to Gateway of Tally > Accounting Vouchers > F8: Sales
Press Alt+I for Acct Invoice mode.
Enter the date and reference.
Select the Party from the List of Ledger Accounts in Party’s A/c Name (use Alt + C to create Ledger under Sundry Debtor).
Select Direct Income Ledger from the List of Items under Particulars.
Specify the amount of 2,00,000 in the Amount field.
Select the TCS ledger from the List of Ledger Accounts and press enter to view TCS Details screen.
In TCS Details screen, enter 2,00,000 in Gross Amount field. Tax details will be updated automatically.
Accept the Default Bill Allocation in the Bill-wise Details screen.
Enter Narration, if required.
Press Enter to accept and save.
Note: TCS transaction can be recorded in Account Invoice by using Direct Incomes Ledgers.
'Accounting TCS on Transfer of right to Use' has been shared with