Accounting Entries for TCS u/s 206C(1H)

Share This Article
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  

Accounting entries if TCS is booked on 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%.
  • 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%.
  • 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



Click below to receive regular updates

  

 

Team FinancePost