Delayed payment of TCS to the department will attract interests and penalties. You can record these payments in a payment invoice.
For example , Sujatha Timber Company had made a sale of Timber to Ganesh Traders , and TCS @ 2.5% was collected. Delayed payment of TCS was made on 25-5-2015 , for which an interest of ₹ 200 was applicable. Also, ₹ 100 had to be paid as penalty for Late Payment.
To record payment of interest and penalty
1. Go to Gateway of Tally > Accounting Vouchers > F5: Payment
2. Select cash or bank ledger in the Account field.
3. Select Interest ledger which is under Indirect Expenses group.
4. Select Interest from the List of Payment Type .
5. Enter 200 in the Amount field.
6. Select Penalty ledger which is under Indirect Expenses group.
7. Select Penalty from the List of Payment Type .
8. Enter 100 in the Amount field.
9. Press Enter .
10. Enter Narration , if required.
The Payment invoice appears as shown below:
11. Press Ctrl + A to save the invoice.