Tax Collection at Source (TCS) -Indian Indirect Taxes - TCS MECHANISM IN GST

[dheerendar_jain]

Dear Experts

I have searched in Google and couldn't find any solution for the Tax Collection at Source (TCS) which is also applicable in every sales with below condition from April 2020.

TCS- Changes required in SAP

• The change in law will require us to collect TCS @ 0.1% on all sale of goods which will be charged on our invoice.
• Applicable to only sale of goods (not for service or on Job work where TDS is applicable and for Export)
• Applicable only if the sale exceeds Rs 50 Lakhs for individual customer for the Financial Year (Apr-March)
• TCS has to be collected only on the excess of 50 Lakhs (ie If during the FY 20-20, the total sales to a customer is 55 Lakhs , TCS has to be collected only on 5 Lakhs)
• TCS has to be calculated on the Taxable Value + GST
• If PAN no of the buyer is not available then the TCS will be 1%
• Not applicable on sale of scrap where the TCS rate is already @1%

SAP Requirement is :

Is it possible to determine Tax Condition type directly in the Invoice instead of Sales Order?

Total Invoice value is not the base for the TCS tax calculation. Base would be total Invoice value + GST of the customer in the FY 2020 -21 minus Credit Memo Invoice balance of this exceeds more than Rs. 50 LAKHS then TCS is charged for the balance amount.

Example:

Total Sales of the Customer 'A' in year 2020-2021 = 70,00,000. 00

Total value of the Credit Memo Invoice in FY 20-21= -1,00,000.00

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Balance = 69,00,000.00

TCS limit -50,00,000.00

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Total (Base for TCS Calculation) = 19,00,000.00

TCS @ 0.1% (PAN is available) = 1,900.00

How this above calculation using condition record through VOFM Routine or User Exit.?

Please provide your expert solution for the same and let me know if you need any more information.

Thanks & Regards

Dheerendra Jain

[jagan4 · Accepted solution]

Hi,

Please check this note 2948539 - Corrections to enable Tax Collected at Source in Outgoing Invoices

Also check the collective note 2898812 - Amendment to Section 206C TCS - Updates

Regards,

Jagankumar

[dheerendar_jain · Accepted solution]

Thank you Jagan for sharing this notes this has met my requirement.

In the configuration of the note it is mentioned that requirement of 2 G/L accounts.

Can you please help me to know why there is a requirement of 2 G/L accounts?

Thanks & Regards

Dheerendra Jain