Tax Collected at Source (TCS) Configuration in D365
A. TCS Applicability and Configuration in D365 1. TCS Applicability Tax Collected at Source (TCS) is an income tax, collected by the seller of specified goods, from the buyer. TCS is a concept where a person selling specific items is liable to collect tax from a buyer at a prescribed rate and deposit the same with the Government. Section 206C of Income Tax Act specifies the detailed list of goods that are liable for TCS tax. Example to understand the concept of TCS: Reyansh purchases jewelry from Ayansh for INR 7 lakh. Here, as per the provisions of TCS tax, Reyansh would be liable to pay INR 7,07,000 to Ayansh (INR 7 lakh for jewelry and INR 7,000 as TCS at the rate of 1%). 2. Who needs to collect TCS (Tax Collected at Source)? Every seller of specified goods shall collect TCS from the buyer of the goods. TCS will be collected: a. At the time of debiting the amoun...