TCS Calculation

The India Localization SuiteTax Engine SuiteApp uses the following buckets to store the accumulated amount for each subsection and challan code. A bucket combines the customer, fiscal year, and the subsection or challan code from a transaction. When an exchange rate applies to a transaction, the SuiteApp converts the bucket values to your company's base currency and calculates TCS.

• India Accumulated Subsection Buckets– This custom record combines subsection code, customer, and financial year, and stores the total amount for each subsection code.

• India Accumulated Challan Buckets– This custom record combines challan code, customer, and financial year, and stores the total TCS for each challan code.

For more information about supported TCS subsection codes, see TCS Subsection Codes.

Each subsection code's total is stored in its own bucket. For example, the bucket for Section Code 206C (1F) holds the total for the 1F subsection code.

The Audit Trail subtab shows logs of changes in the TCS amount and how they affect the totals for each subsection and challan code.

The SuiteApp uses the following logic to calculate the accumulated amounts and thresholds for each subsection code:

• Amount Accumulation and Threshold Calculation for 1H

  • 1H depends on 1C and 1E subsection codes, so its total includes the amounts from 1C and 1E. Any changes to 1C or 1E affect the total for 1H.

  • The SuiteApp considers all invoice and cash sale transactions in a financial year to calculate the accumulated amount for a customer, but the following conditions apply:

    • The item section codes can't be Section 206C (1), (1F), and (1G).

    • The goods can't be supplied outside the country. For example, Place of Supply can't be 96-Other Country.

    • The item can't be a service.

  • To calculate TCS, the accumulated amount is compared to the threshold set in the TCS tax rate rule.

    If the threshold is crossed after adding an item for Section 206C (1H) 6CR, TCS is calculated on the balance. The balance is the total for 1H minus the threshold amount.

    If the threshold is already crossed before adding the item, TCS is calculated on the item's gross amount.

• Amount Accumulation and Threshold Calculation for Other Subsection Codes Excluding 1H

  • Each subsection code's total is stored in its own bucket.

  • All invoices and cash sales for a customer in a financial year are counted toward the total.

  • To calculate TCS, compare the total to the threshold in the TCS tax rate rule. If the threshold is crossed, TCS is calculated on the item's gross amount.

General Notices