https://help.tallysolutions.com/docs/te9rel64/Tax_India/tcs/tcs-at-zero-rate.htm

Recording Sale of TCS Goods at Zero Rate

In case, if the goods referred in Section 206C(1) are to be utilized for the purposes of manufacturing, processing or producing articles or things and not for trading purposes, the buyer by submitting a declaration in Form No. 27C, can get the approval for TCS at zero rate.

Such certificate shall be valid only for the person named therein and to claim the Benefit of zero rate, declaration should be furnished to the person responsible for collecting tax.

For example , on 24-04-2015, Sujatha Timer Company sold 200MT of Timber at ₹ 7500/MT to Mahesh Timbers at a zero rate 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 Mahesh Timbers 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. Enter Narration , if required.

The Sales invoice appears as shown below:

11. Press Ctrl+A to save the invoice.