Tax Collection at Source
Tax Collection at Source (TCS) is an income tax that a seller collects on the sale of specific items from a buyer.
In this setup, a seller is responsible for collecting tax from a buyer at a set rate and depositing it with the government. Section 206C of the Income Tax Act specifies lists the items for which TCS applies and the entities responsible for collecting TCS. A seller should collect TCS from a buyer when they're either deducting or receiving the payment, whichever happens first.
The India Localization SuiteTax Engine SuiteApp enables you to calculate TCS on items that are specified in the Section 206C of the Income Tax Act.
You can calculate TCS on the following type of transactions:
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Cash Sale
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Invoice
In addition, watch the following video to see how to calculate TCS.
To start using the TCS feature, you must first complete the setup. For more information, see Setting up Tax Collection at Source.