Recording Sale of TCS Goods at Lower Rate

Where the Assessing Officer is satisfied that the total income of the buyer justifies the collection of tax at any lower rate than the relevant rate specified in Section 206C (1), Buyer (or licensee or lessee) will be allowed a lower rate of TCS on an application made by the buyer (or licensee or lessee) under sub-section (9) of section 206C in Form No. 13 .

The certificate granted shall be valid for the assessment year specified and is valid only for the person named therein. In Tally.ERP 9, the user can record and compute TCS on transactions, on which lower rate of collection is applicable.

For example , on 20-04-2015, Sujatha Timer Company sold 200MT of Timber at ₹ 7500/MT to Tirumala Timber at a lower rate of 1.5% TCS.

To record the transaction

1. Go to Gateway of Tally > Accounting Vouchers > F8: Sales > Item Invoice

2. Enter the Ref. , if required.

3. Select Tirumala Timber in the Party's A/c Name field. To set lower rate of TCS for this party click here .

4. Select the sales ledger from the List of Ledger Accounts .

5. Select Timber from the List of Stock Items .

6. Enter 200 in the Quantity field.

7. Enter 7500 in the Rate field. The Amount will be automatically calculated.

8. Press Enter from the Amount field.

9. Press Enter .

10. Select the TCS ledger which is created under Duties and Taxes . The TCS amount will get calculated automatically.

11. Press Enter .

12. Enter Narration , if required.

The Sales invoice appears as shown below:

13. Press Ctrl + A to save the invoice.