Tcs

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Mr.Shirish (Querist)
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09 October 2012 If I made a scarp sales (Basic + excise + VAT + TCS) to a buyer. If buyer has return the scrap sales,what will be the accounting effects?
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Party has not paid any amount but raised a debit note with separate TCS. Then how to account?

Hemant Kumar

Hemant Kumar (Expert)
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09 October 2012 Assume Sales amount is Rs. 10000
1) After scrap sales

a) Cash/Bank ac. dr. 10100
to Party ac. 10100

b) Party ac dr. 10100
to sales ac. 10000
to TCS Payable ac. 100

c) TCS Payable ac. dr. 100
to Cash/Bank ac. 100

2) After Sales Return

a) Sales Ac. dr. 10000
to Party Ac. 10000

b) Cash/Bank ac. 10000
to Party Ac. 10000

Give Form 27D of Rs. 100/- which is earlier deposited to central govt.
Party will claim this amount and will get refund.

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