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Accounting entries if TCS is booked on a RECEIPT basis
- The assumption that receipts have crossed Rs. 50 lakhs from a particular buyer starting 1st April 2020.
- TCS will be collected at 0.075%. (w.e.f. 1st April 2021 0.1%)
- Goods of Rs 10,00,000 are sold GST @5%.
At the time of Sales/booking transaction
Sundry Debtors Account …………. Dr Rs.10,50,000
To Sales Account …………. Cr Rs.10,00,000
To GST …………. Cr Rs.50,000
At the time of receipt of sale proceeds from debtors
Bank Account …………. Dr Rs.10,50,000
To Sundry Debtors Account …………. Cr Rs. 10,49,212.50
To TCS Payable …………. Cr Rs. 787.50
Note: Sundry Debtor’s balance will remain outstanding for the amount of TCS. Seller will have to issue a debit note for the same.
When the payment of TCS is made on the 7th of Next Month
TCS Payable …………. Dr Rs.787.50
To Bank Account …………. Cr Rs.787.50
Accounting entries if TCS is booked INVOICE basis
- The assumption that receipts have crossed Rs. 50 lakhs from a particular buyer starting 1st April 2020.
- TCS will be collected at 0.075%. (w.e.f. 1st April 2021 0.1%)
- Goods of Rs 10,00,000 are sold GST @5%.
At the time of Sales/booking transaction
Sundry Debtors Account …………. Dr Rs.10,50,787.50
To Sales Account …………. Cr Rs.10,00,000
To GST …………. Cr Rs.50,000
To TCS Payable …………. Cr Rs. 787.50
At the time of receipt of sale proceeds from debtors
Bank Account …………. Dr Rs.10,50,787.50
To Sundry Debtors Account …………. Cr Rs.10,50,787.50
When the payment of TCS is made on the 7th of Next Month
TCS Payable …………. Dr Rs.787.50
To Bank Account …………. Cr Rs.787.50
Flowchart for applicability of TCS
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