{"id":111131,"date":"2021-02-26T15:46:37","date_gmt":"2021-02-26T10:16:37","guid":{"rendered":"https:\/\/www.vskills.in\/certification\/tutorial\/?page_id=111131"},"modified":"2024-04-12T14:31:21","modified_gmt":"2024-04-12T09:01:21","slug":"tax-collected-at-source-in-tally-erp-9","status":"publish","type":"page","link":"https:\/\/www.vskills.in\/certification\/tutorial\/tax-collected-at-source-in-tally-erp-9\/","title":{"rendered":"Tax Collected at Source in Tally.ERP 9"},"content":{"rendered":"\n

Configuring TCS Feature<\/u><\/strong><\/p>\n\n\n\n

To configure statutory setup for Tax Collected at Source<\/p>\n\n\n\n

To enable TCS in Tally.ERP 9:<\/p>\n\n\n\n

Go to Gateway of Tally > F11: Features > F3: Statutory & Taxation.<\/strong><\/p>\n\n\n\n

  1. In the Company Operations Alteration screen:<\/li><\/ol>\n\n\n\n
    • SetEnable Tax Collected at Source<\/strong> to Yes<\/strong><\/li>
    • EnableSet\/Alter TCS Details<\/strong> to Yes<\/strong><\/li>
    • Enable Set\/Alter TCS Details<\/strong>to Yes<\/strong>.<\/li><\/ul>\n\n\n\n
      \"image191\"<\/figure><\/div>\n\n\n\n
      1. PressEnter<\/strong>to view Company Deductor\/Collector Details.<\/li><\/ol>\n\n\n\n

        In the Company Deductor\/Collector Details<\/strong> screen:<\/p>\n\n\n\n

        • Enter theTax Deduction and Collection Account Number<\/strong>. The Tax Deduction and Collection Account Number (TAN)<\/strong> is a 10-digit alphanumeric number, issued by the Income Tax Department (ITD) to the collectors<\/li><\/ul>\n\n\n\n

          If the format of the TAN number is not correct, then Tally.ERP 9 will display you the error message as shown below<\/p>\n\n\n\n

          \"image-7\"<\/figure><\/div>\n\n\n\n
          • Head Office Tax Deduction and Collection Account Number<\/strong>: In this field enter the head office Tax Deduction and Collection Account Number if any.<\/li>
          • TAN Registration Number<\/strong>: Enter the TAN Registration number in this field.<\/li>
          • Enter theIncome Tax Circle\/Ward (TCS)<\/strong>. This is issued by the Income Tax Department.<\/li>
          • Select theCollector Type<\/strong> from the List of Company Type.<\/li>
          • Is Proprietorship Firm:<\/strong>Set this option to Yes<\/strong> if the concern is a proprietorship firm.<\/li>
          • Enter theName<\/strong> of person responsible<\/strong> for filing the TCS returns. If the concern is a proprietorship concern, then the name of the person responsible will appear instead of the Company<\/strong> Name<\/strong> in the TCS forms and returns generated using Tally.ERP 9.<\/li>
          • Son\/Daughter of<\/strong>: In this field, enter the name of the parent of the person responsible for filing TCS returns.<\/li>
          • Enter theDesignation<\/strong> of the person responsible for filing of the TCS returns.<\/li><\/ul>\n\n\n\n
            \"image192\"<\/figure><\/div>\n\n\n\n
            • PressEnter<\/strong> to Accept.<\/li><\/ul>\n\n\n\n
              1. SetEnable Value Added Tax (VAT)<\/strong>and Set\/Alter VAT Details<\/strong> to Yes<\/strong>,  as VAT is levied on the sale of TCS Nature of Goods.<\/li><\/ol>\n\n\n\n
                \"image193\"<\/figure><\/div>\n\n\n\n
                1. PressEnter<\/strong>to accept and save.<\/li><\/ol>\n\n\n\n

                  Creating Party Ledger<\/u><\/strong><\/p>\n\n\n\n

                  To create Party Ledgers for Sundry Debtors:<\/p>\n\n\n\n

                  Go to Gateway of Tally > Accounts Info > Ledgers > Create<\/strong><\/p>\n\n\n\n

                  1. In in theName<\/strong>field, enter the name of the buyer company e.g. Chandra Timbers<\/strong>.<\/li>
                  2. In theUnder<\/strong>field, select Sundry Debtors<\/strong> option from the List of Groups.<\/li>
                  3. If required, setMaintain balances bill-by-bill?<\/strong>to Yes<\/strong>.  Enter details in the Default Credit Period<\/strong>, if applicable. By default, the Inventory Values are affected?<\/strong> field is set to No<\/strong>.<\/li>
                  4. SetIs TCS Applicable<\/strong>to Yes<\/strong>?<\/li><\/ol>\n\n\n\n
                    \"image194\"<\/figure><\/div>\n\n\n\n

                    In the TCS Details screen<\/p>\n\n\n\n

                    1. In the  Buyer\/Lessee<\/strong> field select the Collectee Type<\/strong> from the List of Collectee Types.<\/strong><\/p>\n\n\n\n

                    2. Set Is Lower\/No Collection Applicable?<\/strong> to No<\/strong>.<\/p>\n\n\n\n

                    3. Set Ignore Surcharge Exemption Limit<\/strong> to No<\/strong>.<\/p>\n\n\n\n

                    \"image195\"<\/figure><\/div>\n\n\n\n
                    \"image196\"<\/figure><\/div>\n\n\n\n

                    4. Enter party Mailing Details<\/strong> and Tax Information<\/p>\n\n\n\n

                    \"image197\"<\/figure><\/div>\n\n\n\n
                    1. PressEnter<\/strong>to accept and save<\/li><\/ol>\n\n\n\n

                      Creating Sales Ledger and Output VAT Ledger<\/strong><\/p>\n\n\n\n

                      To create Sales Ledger:<\/p>\n\n\n\n

                      • Go toGateway of Tally > Accounts Info > Ledgers > Create<\/strong><\/li>
                      • Enter a name for the sales account in theName<\/strong><\/li>
                      • In theUnder<\/strong> field, select Sales Accounts<\/strong> from the List of Groups.<\/li>
                      • SetInventory Values are affected?<\/strong> to Yes<\/strong>.<\/li>
                      • SetUsed In VAT Returns<\/strong> to<\/li>
                      • InVAT\/Tax Class<\/strong> screen, select VAT\/TAX Class<\/strong>  Sales @ 12.5%<\/strong> from the List of VAT\/TAX Class.<\/li>
                      • Set the optionUse for Assessable Value Calculation<\/strong> to No<\/strong><\/li>
                      • PressEnter<\/strong> to accept and save.<\/li><\/ul>\n\n\n\n

                        Output VAT Ledger<\/strong><\/p>\n\n\n\n

                        To Create Output VAT Ledger<\/p>\n\n\n\n

                        • Go toGateway of Tally > Accounts Info > Ledgers > Create<\/strong><\/li>
                        • Enter a name for theOutput VAT<\/strong> account in the Name<\/strong><\/li>
                        • In theUnder<\/strong> field, select Duties & Taxes<\/strong> from the List of Groups.<\/li>
                        • InType of Duty\/Tax<\/strong> field, select VAT<\/strong> from Types of Duty\/Tax.<\/li>
                        • Select theVAT\/Tax Class<\/strong>  Output VAT @ 12.5%<\/strong> from the List of VAT\/Tax Class.<\/li>
                        • PressEnter<\/strong> to accept and save.<\/li><\/ul>\n\n\n\n

                          Creating TCS Ledger<\/strong><\/p>\n\n\n\n

                          To create a TCS Ledger:<\/p>\n\n\n\n

                          • Go toGateway of Tally > Accounts Info > Ledgers > Create<\/strong><\/li>
                          • In theLedger Creation<\/strong> screen, enter the name of the TCS<\/strong> ledger in the Name<\/strong><\/li>
                          • In theUnder<\/strong> field, select Duties & Taxes<\/strong> from List of Groups.<\/li>
                          • SelectTCS<\/strong> from Types of Duty\/Tax<\/strong> in the Type of Duty\/Tax<\/strong><\/li>
                          • Select theNature of Goods\/ Contract\/ License\/ Lease<\/strong> from the List of TCS Types<\/strong>.<\/li>
                          • SetInventory Values are affected?<\/strong> to No<\/strong>.<\/li>
                          • PressEnter<\/strong> to accept and save.<\/li><\/ul>\n\n\n\n

                            Creating a Payment Voucher<\/u><\/strong><\/p>\n\n\n\n

                            In Tally.ERP 9, from Release 2.0<\/strong> the Tax\/Duty payments<\/strong> can be recorded using S<\/u><\/strong>: Stat Payment<\/strong> Button.<\/p>\n\n\n\n

                            To record TCS Payment using the auto fill of statutory payment<\/strong><\/p>\n\n\n\n

                            Go to Gateway of Tally > Accounting Vouchers > F5: Payment<\/strong><\/p>\n\n\n\n

                            In F12: Configure (Payment Configuration)<\/strong><\/p>\n\n\n\n

                            • EnsureUse Single Entry mode for Pymt\/Rcpt\/Contra<\/strong> is set to Yes<\/strong><\/li><\/ul>\n\n\n\n
                              1. Enter theDate<\/strong>____<\/li>
                              2. PressAlt + S<\/strong>or click on S<\/u><\/strong>: Stat Payment<\/strong> to view Statutory Payment screen.<\/li>
                              3. InStatutory Payment<\/strong>screen<\/li><\/ol>\n\n\n\n
                                • Type of Duty\/Tax<\/strong>: In this field select the Tax\/Duty Type towards which tax payment entry is being recorded. Here we are recording TCS duty payment entry, hence selectTCS<\/strong> from the Type of Duty\/Tax<\/li><\/ul>\n\n\n\n
                                  \"image198\"<\/figure><\/div>\n\n\n\n
                                  • Auto Fill Statutory Payment<\/strong>: Set this option toYES<\/strong> to auto calculate and fill the duty payable to the Government. Set this option to NO<\/strong>, if the user wants to manually select the duty ledger and duty bills. ABC Company wants to auto fill tax details in payment voucher, hence the option Auto Fill Statutory Payments<\/strong> is set to Yes<\/strong>.<\/li><\/ul>\n\n\n\n
                                    \"image199\"<\/figure><\/div>\n\n\n\n
                                    • On setting the optionAuto Fill Statutory Payments<\/strong> to Yes<\/strong>, based on the Duty\/Tax Type<\/strong> selected Tally.ERP 9 displays the appropriate statutory payment fields to fill the details.<\/li>
                                    • Select theTCS @ 2.5%<\/strong> Ledger from the List of TCS Ledgers<\/strong> and enter.<\/li>
                                    • SelectBuyer\/Lessee Status<\/strong> from Deductee\/Collectee Status<\/strong> and enter. This lets you prepare separate challans as it is mandatory for different types of Collectees.<\/li>
                                    • Enter theTo Date<\/strong> to select the period for generation of TCS<\/strong> Challan<\/strong>.<\/li><\/ul>\n\n\n\n
                                      \"image200\"<\/figure><\/div>\n\n\n\n

                                      . Press Enter<\/strong> to save the Statutory Payments<\/strong>.<\/p>\n\n\n\n

                                      5. TCS Ledger<\/strong> with TCS Details<\/strong> will be displayed in the payment voucher.<\/p>\n\n\n\n

                                      \"image201\"<\/figure><\/div>\n\n\n\n

                                      . Select the State<\/strong> Bank<\/strong> of India<\/strong> Ledger from the List of Ledger Accounts in Account<\/strong> field..<\/p>\n\n\n\n

                                      7. Set the option Provide<\/strong> Details<\/strong> to Yes<\/strong> and enter the Challan<\/strong> Details<\/strong>.<\/p>\n\n\n\n

                                      \"image202\"<\/figure><\/div>\n\n\n\n

                                      8. Press Enter<\/strong> to accept and save.<\/p>\n\n\n\n

                                      Statutory Reports TCS<\/u><\/strong><\/p>\n\n\n\n

                                      Statutory Reports are reports required in government prescribed formats for the purpose of filing returns. TCS statutory reports in Tally.ERP 9 are dynamically generated; Print and file a report. An e-Filing TCS return is supported using the export feature.<\/p>\n\n\n\n

                                      To view Statutory Reports:<\/p>\n\n\n\n

                                      Go to Gateway of Tally > Display > Statutory Reports > TCS Reports<\/strong><\/p>\n\n\n\n

                                      \"image203\"<\/figure><\/div>\n\n\n\n

                                      TCS Reports<\/strong> menu displays the following options.<\/p>\n\n\n\n

                                      • Print Form 27D<\/li>
                                      • ETCS Forms<\/li>
                                      • Print Form 27B<\/li><\/ul>\n\n\n\n

                                        TCS Payables Reports<\/u><\/strong><\/p>\n\n\n\n

                                        To view TCS Payable<\/strong><\/p>\n\n\n\n

                                        Go to Gateway of Tally > Display >Statements of Accounts > TCS Outstandings > TCS Payables<\/strong> The TCS Payables<\/strong> report is displayed as shown<\/p>\n\n\n\n

                                        \"image204\"<\/figure><\/div>\n","protected":false},"excerpt":{"rendered":"

                                        Configuring TCS Feature To configure statutory setup for Tax Collected at Source To enable TCS in Tally.ERP 9: Go to Gateway of Tally > F11: Features > F3: Statutory & Taxation. In the Company Operations Alteration screen: SetEnable Tax Collected at Source to Yes EnableSet\/Alter TCS Details to Yes Enable Set\/Alter TCS Detailsto Yes. PressEnterto view Company Deductor\/Collector Details. In the Company Deductor\/Collector Details screen: Enter…<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-111131","page","type-page","status-publish","hentry"],"acf":[],"yoast_head":"\nTax Collected at Source in Tally.ERP 9 - Tutorial<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.vskills.in\/certification\/tutorial\/tax-collected-at-source-in-tally-erp-9\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Tax Collected at Source in Tally.ERP 9 - Tutorial\" \/>\n<meta property=\"og:description\" content=\"Configuring TCS Feature To configure statutory setup for Tax Collected at Source To enable TCS in Tally.ERP 9: Go to Gateway of Tally > F11: Features > F3: Statutory & Taxation. In the Company Operations Alteration screen: SetEnable Tax Collected at Source to Yes EnableSet\/Alter TCS Details to Yes Enable Set\/Alter TCS Detailsto Yes. PressEnterto view Company Deductor\/Collector Details. 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