TCS: Tax Collected at Source is the Tax Collected by the Seller from the Buyer during the Sale of Specified Goods.
This Provision is Governed by Section 206C of the Income-Tax Act.
The Seller Collects a Specified Percentage of Tax from the Buyer, which is then deposited with the tax authorities.
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FAQ 1: What is TCS Adjustment?
Ans: TCS Adjustment is applicable for any correction of the TCS Amount, TCS Rate and TCS Base Amount already calculated but Not Paid to the Government Authorities.
FAQ 2: What is TCS Adjustment in Income Tax?
Ans: As per Section 206CCA, a Buyer will be subjected to a Higher Rate of Tax Collection at Source (TCS) if the following conditions are met,
The Buyer has Not filed Income Tax Returns (ITR) for the Two Financial Years preceding the relevant financial year in which TCS is to be collected.
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Hint: You may use TDS Adjustment Journal, following the Same Steps. But main point is, you need to use TDS related Setup and Pages (Screen/Window).
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Read the Short-Blog Post: ➡️https://navisionfunctionalexpert.com/short-blog/f/tcs-entries-in-navision-%7C-business-central
This Provision is Governed by Section 206C of the Income-Tax Act.
The Seller Collects a Specified Percentage of Tax from the Buyer, which is then deposited with the tax authorities.
----------
FAQ 1: What is TCS Adjustment?
Ans: TCS Adjustment is applicable for any correction of the TCS Amount, TCS Rate and TCS Base Amount already calculated but Not Paid to the Government Authorities.
FAQ 2: What is TCS Adjustment in Income Tax?
Ans: As per Section 206CCA, a Buyer will be subjected to a Higher Rate of Tax Collection at Source (TCS) if the following conditions are met,
The Buyer has Not filed Income Tax Returns (ITR) for the Two Financial Years preceding the relevant financial year in which TCS is to be collected.
------
Hint: You may use TDS Adjustment Journal, following the Same Steps. But main point is, you need to use TDS related Setup and Pages (Screen/Window).
-----
Read the Short-Blog Post: ➡️https://navisionfunctionalexpert.com/short-blog/f/tcs-entries-in-navision-%7C-business-central
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LearningTranscript
00:00Hello friends, welcome to my channel. I am Prerna Salmadvi and today we are going to see
00:08how to use TCS Adjustment Journal. If you have made a mistake while passing the TCS
00:18entry and now you want to rectify it, then you can correct it through this TCS Adjustment
00:25Journal. TCS Adjustment Journal, which can bring changes in the posted entry. So, what
00:40you have to do is, you have to select the batch name. You can see these lines below.
00:46And here is a field, Transaction Number. So, here is a field, Transaction Number. Now, you have to click it.
00:59As soon as you click, you will see the entries. So, check the invoice entry in this and you can activate that invoice entry.
01:13But there is an error here. TCS Adjustment Journal must have a value in Source Code Setup. So, how can we solve this error?
01:22Source Code Setup. You have to go to this and here you will get the TCS Adjustment Journal option.
01:37Here you select TCS Adjustment Journal. As soon as you select, your error will be solved here. Then click on Transaction Number.
01:48Select the wrong invoice entry that you want to rectify. And document type, Invoice, Document Number.
01:59If you have entered the number series, then you can check that if the number series is here, then you will get it.
02:06And if you haven't entered it, then you can check the number series.
02:10As you can see, the number series is here. Now, if you have made the number series by using TCS Adjustment,
02:18then you can make the number series by using TDS and TCS Adjustment. If not, you can also make the number series.
02:26So, what we have to do is, we have to create a new TCS Adjustment because this one is made for TDS.
02:40So, we will not replace it, we will make a new one. Click on New, TCS Adjustment.
02:47Now, you can write here.
02:49You can default the number series and you have to go inside it.
03:14You can create the number series like this.
03:43Next, you have to pick the default number and then you have to click on OK.
04:01So, this automatic number series will come.
04:03If you want to keep the header number series separate and the posting number series separate,
04:08then you can make a new number series, PTCS Posted Tax Collected at Source Adjustment.
04:17But I am keeping the same, this number will be printed.
04:20Now, as I selected the invoice from the transaction number, this invoice, the details of this have come on the screen.
04:35We delete the first line because the document number series was not coming in it.
04:45Now, the document number series is coming.
04:47Now, what we will do is, we will take the document type and what we have to check is,
04:55let's say the amount was wrongly detected.
05:00The amount of TCS is shown here, Collected 10.
05:08So, in this, whatever happened in the transaction, like what was the account number, you can check everything.
05:17So, in this way, the customer and the GL, the GL that was used, TCS Payable, you can check all this.
05:28Now, we have to see how we can edit it.
05:33You can reverse the TCS entry of any post, you can cancel it.
05:39You have to click and take that entry, which was the wrong post, which we have to reverse.
05:47After this, while selecting, you have to check all the details.
05:54Now, like in this transaction, its base amount was 1000, 1% TCS is applied, the amount is 10 rupees, Collected 10.
06:08And scroll a little more, you will see the customer's number, customer's name, all these details.
06:18And you can also check the TCS Payable, and whatever section will be there, all those things, and this amount field, you will get 0.
06:31Now, to reverse, if 10 rupees were collected, then we have to reverse 10 rupees again.
06:42So, to reverse the collected rupees, what you have to do here is, you have to hit the backspace once, and tap.
06:54As soon as you hit the backspace and tap, this field will be updated.
07:00Earlier, it was showing 0 here, now it is showing minus 10.
07:04So, in this way, it has been updated, now you have to post it.
07:10So, your entry will be reversed, it will be adjusted, it will be plus or minus, it will be 0.
07:20And you can check this in the page of TCS entries.
07:34TCS
07:46Here, you have to check the invoice, this one.
07:52See, invoice, customer's number, TCS base amount 0, whatever was charged has become 0.
08:07This is the customer's number.
08:11The amount column is 0.
08:15This is the amount column, this is the amount column.
08:20The percentage is standard, it is coming from the rates chart, but the amount is 0.
08:26The amount that you will get, that amount is all 0, plus or minus, it has been adjusted.
08:34So, you will not see any value in the amount.
08:40And this field, adjusted, you will see a tick.
08:47This field will be updated if any transaction is adjusted using TCS Adjustment Journal.
08:55This has been ticked.
08:57And the invoice amount was less.
09:01So, all these will be adjusted and you will see 0, 0.
09:05So, in this way, it will be completely reversed.
09:10So, in this way, you can reverse it.
09:12Try reversing it.
09:14Thanks for watching.