TCS on Sales Transactions

In the case of provision of Services, the Customer is required to deduct Income Tax at source. However, this is not considered by the Seller/Service Provider at the time of booking the transaction, but only at the time of making any payment to the Seller/Service Provider.

There is generally no deduction of tax in the case of sale of goods. However, the sale of certain specified goods attract collection of Income Tax at Source by the Seller, at a certain percent on the value of sales, over and above the value of goods. This is called Tax Collected by Seller (TCS).

TCS should be set up on the Party Master for the Customer. for TCS to be applicable