09 February 2019
Hi Team, Our company brought a car on which I have paid TCS, I have included this TCS in Fixed asset ledger. Whether I can claim TCS paid on these purchased item in companys net tax liability? This TCS is showing in companys 26 AS statement .Also provide the entry to be recorded.
09 February 2019
Dear Kiran, TCS is just like TDS deducted by other persons. Company can take benefit of TCS paid on Car to adjust from Net Tax Liability. You are already seeing the credit in Form 26AS. Therefore, you need not to consider this as cost of purchase for Car and value will not be capitalised in Fixed Asset Register. Rather you need to book as TCS Receivable (Current Assets) which shall be adjusted with Net Income Tax Liability of company.
CAclubindia
