https://help.tallysolutions.com/docs/te9rel64/Tax_India/tcs/tcs-sales.htm

Recording Sales Transaction (TCS)

TCS sales can be of two types, sale of goods under TCS and transfer of right to use. This topic tells you how to record both these transactions.

Sales of TCS Goods

For example , Sujatha Timer Company trade in timber that is obtained from forest lease. This is subject to TCS at 2.5%. On 6-4-2015, Sujatha Timber Company sold 100 metric ton (MT) at ₹ 7,500/MT of timber to Chandra Furniture.

To record a sales transaction

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

2. Enter the Ref. , if required.

3. Select Chandra Furniture in the Party's A/c Name field.

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

5. Select Timber from the List of Stock Items .

6. Enter 100 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.

Transfer of Right to Use

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.

For example , MAR Teck Park is renting out their parking lot to Prakash Enterprises for  ₹ 2,00,000 for the month of May.

To record the transaction

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

2. Enter the Ref. , if required.

3. Select Prakash Enterprises in the Party's A/c Name field.

4. Select the Rent (Income) ledger under Particulars .

5. Enter 200000 in the Amount field.

6. Press Enter .

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

8. Press Enter .

9. Enter Narration , if required.

The Sales invoice appears as shown below:

10. Press Ctrl + A to save the invoice.