Tax Collected at Sources in Tally Erp 9.0

                                            Introduction
Tax Collected at Source (TCS) refers to the collectionof tax at source by the seller (collector) from
the buyer (collectee/payee) on trading of the goodsspecified u/s 206C of the Income Tax Act,
1961. It is collected when accrued or paid, whichever is earlier.

                                                                     Scope & Applicability
Tax has to be collected at source by the seller, while debiting the amount payable by the buyer to
buyer's account (or) at the time of receipt of suchamount from the buyer in cash or by issue of
cheque/draft or by any other mode, whichever is earlier.

                                  TCS Nature of Goods
As per section 206C (1), the list of goods covered under TCS and the Rate of tax is as shown:
Sl.No. Nature of Goods Rate (%)
1 Alcoholic liquor for human consumption 1%
2 Tendu leaves 5%
3 Timber obtained under a forest lease 2.5%
4 Timber obtained by any mode other than under a forest lease 2.5%
5 Any other forest produce not being timber or Tendu leaves 2.5%
6 Scrap 1%