Upgrade and Save: Get 10% OFF on CAclubindia Pro Subscription! Use Code: SAVE10 Subscribe Now!

Treatment of tcs on liquor

11 July 2012

Hi...

My query is regarding TCS charged on Liquor purchased...Usually Hotel purchases Liquor and TCS in charged on the bill..Being the Buyer there are 2 questions coming in my mind :-

1.) Can i claim refund of TCS ?

2.) If not, then accounting treatment of TCS ? Is it ok if I dont show the bifercation in my records and directly expense it out by adding in the value of Liquor ?

Thanks

Reply
Follow
Share

4 Replies

Ashish (CA) (166 Points)
Replied 11 July 2012

In simple word TCS is tax collected by Dealer. So you can claim benefit of it by deducted it from your tax liability.

Treatment of TCS should be similar to TDS.

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

CA Kamal Aggarwal (Accounts Manager) (78 Points)
Replied 11 July 2012

TCS should be treated similar to TDS. And like ashish said you can claim benefit of it by deducting it from your income tax liability.

Entry should be done as:

Purchases of Liquor Dr. xxx

TCS u/s 206C Dr. xxx

To Supplier xxx

2 Like

CA Ankita Agarwal (CA) (23 Points)
Replied 11 July 2012

I totally agree with the reply given by Mr.Ashish and Mr.Kamal...if u have tds liability set off can be taken...n even refund can be taken provided the seller deposited it with the government...