mangesh chitnis (Accountant) (114 Points)
09 November 2020Some of our purchase parties are uploading their invoices without showing effect of TCS in Invoice Amount (deducting TCS amount from Invoice Total) & some are uploading actual Invoice Total with TCS in GSTR-1.
What is the right way? Please suggest
Regards
BhagyaLAkshmi,FCA
(Proprietor)
(39 Points)
Replied 08 April 2021
The provision of TCS says that.
Section 206C(1H): Section 206C(1H) – Every person, being a seller, who receives any amount as consideration for the sale of any goods of the value or aggregate of such value exceeding fifty lakh rupees in any previous year at the time of receipt of such amount, collect from the buyer, a sum equal to 0.1% of the sale consideration exceeding fifty lakh rupees as income-tax.
Hence the TCS is on receipt of amount so it is calculated on total amount received i.e including GST.
For ease of documentation and collection every one is doing in invoice itself
Hence TCS is not part of invoice so it should not be reflected in E invoice i.e it should not be added in GSTR 1
debora M
(BUSINESS DEVELOPMENT MANAGER)
(1697 Points)
Replied 08 April 2021
Provisions of TCS on sale of goods applies when any seller receives consideration for the sale of goods from a buyer of an amount exceeding INR 50 lakh in a single financial year and turnover of such seller in the preceding financial year exceeds INR 10 crore.
debora M
(BUSINESS DEVELOPMENT MANAGER)
(1697 Points)
Replied 08 April 2021
Provisions of TCS on sale of goods applies when any seller receives consideration for the sale of goods from a buyer of an amount exceeding INR 50 lakh in a single financial year and turnover of such seller in the preceding financial year exceeds INR 10 crore.
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 08 April 2021
TCS u/s 206C(1H) is related to income tax act.
The query is about TCS under GST.
https://cleartax.in/s/tcs-under-goods-and-services-tax#net
[refer 7. How to compute taxable value of the supplies for TCS?]
CAclubindia
