As per the Income Tax Act, 1961, every corporate and government entity responsible for collection of tax at source should furnish TCS returns containing details of collectee(s) and challan details relating to deposit of tax with the Income Tax Department. Form 27EQ is the quarterly return statement for TCS. The due dates for filing returns are July 15th, October 15th, January 15th, and for the last quarter, April 30th.
The Form 27EQ report in Tally.ERP 9 assists you in generating accurate the returns to be filed.
The report can be drilled down to the voucher entry level to display complete information of each transaction.
To generate the Form ER1
1. Go to Gateway of Tally > Display > Statutory Reports > TCS Reports > Form 27EQ
2. Click F1: Detailed.
The statistics screen appears as shown below:
The Form 27 EQ report can be filed with accurate information available in this report. It has three main sections:
This displays the total number of transactions which are considered for the generation of Form 27 EQ.
● Press Enter on Total Number of Transactions to view the Statistics of Vouchers.
Transactions that will be considered as Included for generating Form 27EQ:
● Sales entries in the current period, with TCS collection
● Entries recorded in Debit Note/Journal voucher for increase in sales value and/or TCS value
● Entries for payments received in advance from collectee
● TCS adjustment entries
● Entries accounting for TCS reversals and TCS deduction w.r.t escalations and de-escalations
● TCS ‘book entries’ for collections made by or on behalf of the Government
These are transactions that do not carry the TCS details that are requisite to generate Form 27EQ, and hence will be excluded while generating the form. Transactions that will be considered as Excluded for generating Form 27EQ:
● All entries where TCS is not applied
● Entries recorded using any of the following Voucher Types:
o Inventory Vouchers
o Order Vouchers
o Debit Note (entries with no TCS implications)
o Credit Note (entries with no TCS implications)
o Vouchers marked as Optional
o Reversing Journal
o Memorandum Vouchers
o Payroll Vouchers
o Journal Vouchers recorded with adjustment entries not related to TCS
● Press Enter on Excluded Voucher Details to view the Excluded Voucher Details.
It displays the complete list of information gaps found in transactions. Until these details are specified, either in masters or transactions, the transaction cannot be considered for filing return. It consists of two broad categories,
● Master Related Exceptions
● Transactions Related Exceptions
All the transactions which are displayed here requires user’s intervention to provide the appropriate details. Provision to completely exclude uncertain transactions is also made available. Hence, any transaction which has information gaps but is not required to be shown in the quarterly return, can be moved to Excluded Transactions.
Details of all TCS entries are listed here under two heads:
● Collection at Normal Rate
● Collection at Zero Rate
This will contain the statistics of all TCS payments (deemed or actual) that exist in the data till date. This will not contain any of the payment entries that are not related to the current period. Any payment entries other that TCS payment entry will not appear here.
All the TCS payment to department till date which is applicable for the report period, will be listed as Included Transactions under this section.
Payment transactions that may possibly be TCS payments, but cannot be ascertained due to missing information, will be listed here. Transactions will be listed here under the following circumstances:
● The Duty Type has not been set for the duty ledger
● The type of TCS Payment is not available. That is, whether the payment is made towards Late Fee, Interest, Income Tax, Surcharge, Education Cess, Secondary Education Cess, or Other Payments.
● Details of the bank where the payment has been made, is unavailable
● The period for which the payment is made, is not available
● The payment entry has not been linked to a deduction entry
● The payment amount has not been rounded off. As per rules, TCS payments need to be rounded off figures.
All payment vouchers that have been ‘included’ for generating returns, will be captured in this section based on the category of payment.
Drill down to view the Payment Voucher report, where the date, voucher number, duty type (education cess, secondary education cess, etc.) and the respective amount, payment type (Interest, Late Fee, etc.) and the respective amount, and the total amount paid.
Drill down further to view the Deduction Voucher report, the following details will be displayed:
● Party Name
● Collectee Type
● Assessable Value
● Income Tax
● Education Cess
● Secondary Education Cess
● Total amount paid
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