Provision regarding TCS

This query is : Resolved

CA. ALOK SHARMA (Querist)
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08 December 2010 Various issues which needs to be resolved are:-

CASE:- A ltd. sold scrap to B ltd. worth rs.1,00,000/-.

ISSUE:- 1) How and by whom TCS will be collected

2) who will issue certificate

3) who will claim deduction

Vishal Kakkad

Vishal Kakkad (Expert)
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08 December 2010 A Ltd. Should collect Tax from B Ltd. and paid to ITD.

Formulation is as follows

1) Basic Price : Rs. 100000
2) Excises & VAT e.g. Rs. 20,000
3) Total Invoice Rs. 1,20,000
4) TCS Rs. 1200/-
5) Total Amont Receivable : Rs. 1,21,200/-

Accounting Treatment
B Ltd. A/c. Dr Rs. 1,21,200
To Sales Rs. 1,00,000
To Excises & VAT Rs. 20,000
To TCS Payable Rs. 1,200