can anyone say in form 27EQ which amount to be stated in colum total value of purchases and amount of payment or credit. What is the difference between the two. whether gross up of tcs to be shown or net amount.
20 Replies
Amol Gopal Kabra (CA,CS,DISA)
(Practicing CA)
(8639 Points)
Replied 26 October 2009
Ms. Sita,
The amount to be entered in the Form 27EQ is the amount you credit to the profit and loss account as sale of the concerned item. TCS is difference than TDS, i the respect that in TCS the amount is in addition of the basic amount as against in TDS, it is a deduction from the basic amount. You can get the clarification from the following example.
TCS. Assume Rate @ 1% (All inclusive, for example purpose)
Sales Rs. 1000, TCS Rs. 10, Total receivable from party Rs. 1010.
Payable to Govt. Rs.10
TDS. Asssume Rate @ 10% (All inclusive, for example purpose)
Expenditure Rs.1000, TDS Rs. 100, Payable to party Rs.900.
Payable to Govt. Rs. 100.
Regards,
CA. Amol G. Kabra
Sita Mulchandani
(professional)
(51 Points)
Replied 27 October 2009
Mr. Amol,
Thanks for your answer. There are two difference columns in form 27EQ. That I want to know that which amount we have to show in Total value of purchases & in amount paid/credited. Assuming your example that total value of purchase to be shown is Rs. 1010 & amount paid/credited is Rs. 1010. Is it correct.
Amol Gopal Kabra (CA,CS,DISA)
(Practicing CA)
(8639 Points)
Replied 27 October 2009
Ms. Sita, In case of TCS, the amount is not credited, but debited and it is not paid but collected. I am clarifying this because, it will creat a confusion otherwise. I am attaching herewith a excel file that sall clear your doubt. Please refer to point no. 21 and 22. I have highleghted the two rows with yellow color so that you can identify it very well.
It is on page no 13. (Row 154, 155)
Hope it will clear your doubt.
Regards,
CA. Amol G. Kabra
Amol Gopal Kabra (CA,CS,DISA)
(Practicing CA)
(8639 Points)
Replied 27 October 2009
Sorry forgot to attach the file.
Here it is.
The file is for correction of 27 EQ. but it will satisfy your doubt.
Attached File : 33 form 27eq.xls downloaded: 2200 times
Sita Mulchandani
(professional)
(51 Points)
Replied 27 October 2009
It is correct that it should be amount debited and collected but form states that it is credited and purchase. It is techincally correct that we can use the term collected and debited in case of seller and credited and purchase in case of buyer but i want to know the figure which we have to shown in the form. Amount of payment and credit means i think what we have to mention there is sale amount inclusive of taxes and others but exclusive of TCS. Then which amount we have to show in total value of purchases which is above the column of amount of payment and credit.
Amol Gopal Kabra (CA,CS,DISA)
(Practicing CA)
(8639 Points)
Replied 27 October 2009
Ok.. Let me clarify.
In the column where it is written the total amount of purchase of credit (here the person collecting tax is seller. so consider the person who has collected tax) mention the amount of sale or otherwise the amount of purchase by the purchaser, excluding TCS, has to be mentioned.
In the column where it is written the total amount collected, the gross total including TCS has to be mentioned.
Also, correct me if i m wrong somewhere.
Now i hope your doubt is clear. Still if you have any problem, do write back..
Regards,
CA. Amol G. Kabra
Sita Mulchandani
(professional)
(51 Points)
Replied 28 October 2009
As per our understanding as stated by you is correct but if we state total amount collected as gross total inclusive of tcs then as per the softwares available, TCS it is calculated on that inclusive amount of TCS. So it means there we have mention only the amount of sales inclusive of taxes etc but exclusive of TCS. If we shown the sales in the column amount collected or debited then which figure we have to show in the total amount of purchase is not clear to me. Please let me know if any clarification in this regard is given by department.
Amol Gopal Kabra (CA,CS,DISA)
(Practicing CA)
(8639 Points)
Replied 28 October 2009
What you say is correct. The software calculates on the inclusive amount. But you know what i really feel that there is actually no need to have two columns one one is sufficient. I will have to look for any clarification on the same if available. If i got i will surely share here. Till then i shall advise that enter such amount which calculates the accurate amount of TDS. as the liability should not arise on the collector of tax. This is what i feel we should to. And the e-tds return shall be valid.
Regards,
CA. Amol G. Kabra
chandan kaushal
(Professional)
(27 Points)
Replied 06 May 2014
Total value of Purchase stands for Total value of transaction.{E.g. suppose Basic amount is Rs.1000 & vat @ 13.5% is 135. i.e total = Rs.1135. then calculate TCS @ 1% of 1135=11.35. Gross total (1135+13.5=1146.35) }. In column of Total value of Purchase show Rs. 1146.35.and In column of amount credited/paid show Rs. 1135. You can check it by generating Form 27EQ from your software. (Its my opinion only. yet no clarification.)
Pushkar Karwa
(2 Points)
Replied 10 January 2020
If an invoice has two items one which has TCS applicable and the other, on which no tcs is applicable,what amount is to be mentioned in return.?
Seema Bhansali
(Accountant)
(22 Points)
Replied 07 January 2021
Hello sir ,
CAn you please clarify Total Purchase value means the Total sale of the particular party during the year or the Sale during the Quarter Oct ' 2020 to Dec ' 2020 for which TCS return is to be filed.
Aparna Kedia
(Article)
(23 Points)
Replied 12 January 2021
Hello, can anyone clarify that for return for TCS on sale of goods, total value of purchase would mean what.
1. Whether purchase amount is to be put or sale figure.
2. The value if sale is for what period and whether it is party wise or monthly/quarterly.
Regards,
Aparna
Jyoti Kanta Das
(Accounts Officer)
(35 Points)
Replied 23 May 2021
So far I faced the same for the New 206C (1H) in the eTCS Return 27EQ.
1st : The TDS Department has to give better guidelines regarding the intended figures to be put in their returns.
If the seller need to file the return, then what did the "Purchase" doing in the Form.
2ndly so far my understanding
a) Amount paid or Debited : from the view point of the buyer OR say what the seller has received.
b) Total Value of Purchases : is the total value of Sale to the particular party against which TCS is evaluated .
e.g. if the seller sold the goods for 1,00,00,000/- + GST5% 5,00,000 = Invoice Value Rs 1,05,00,000/-
the Buyer paid 90,03,000/- (including TCS) during the notified period.
then TCS will be calculated @ 0.075% (Normal 0.1%) on 40,00,000 (90 L - 50 L) = 3,000/-.
in column (672) Collection Code : R (for Section 206C 1H)
(670) Amount Paid/Debited: 40,00,000/-
(673) TCS : 3,000/-
(669) Total Value of Purchase : Rs. 1,05,00,000/-
Dear exports, please correct me if I am wrong.
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