Tcs

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Querist : Anonymous

Querist : Anonymous (Querist)

11 December 2014 For collecting TCS, is it required to show TCS in Invoice separately ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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11 December 2014 Yes it should be shown separately.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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11 December 2014 yes show it seperately........................

Querist : Anonymous

Querist : Anonymous (Querist)

11 December 2014 Is there any legal provision , please share ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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11 December 2014 Unless you show it separately it will be assumed that you have not collected TCS.

Rupesh Jain

Rupesh Jain (Expert)
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12 December 2014 you have to show separately, otherwise how can you and buyer/legal authority determine the value of tcs.

Querist : Anonymous

Querist : Anonymous (Querist)

12 December 2014 Any section no. for reference.

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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26 July 2025 Yes, there **is a legal basis** for showing **Tax Collected at Source (TCS)** separately on the invoice.

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### ✅ Legal Provision:

**Section 206C of the Income-tax Act, 1961** governs **TCS**.

While **Section 206C** itself does **not explicitly mandate** that TCS must be shown separately on the invoice, it is a **standard and accepted practice** because:

1. **Rule 31(1)(b)(ii)** of the **Income-tax Rules, 1962** states that the deductor/collector shall furnish a certificate of TCS (Form 27D), which **must contain**:

* The **amount collected**
* The **rate of collection**
* The **nature of the transaction**
* The **invoice or bill number**

2. **Section 206C(5)** also requires the seller to issue a certificate of TCS, which includes **details of the collection** — this implies the amount must be **explicitly known and stated**.

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### 🧾 Practical Reason for Separate Disclosure:

* If TCS is not shown separately:

* It may be treated as **part of sale price**
* Could lead to disputes in **Form 27D** reconciliation
* Buyer may face **difficulty in claiming TCS credit**

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### 📌 Industry Practice:

Most ERP/accounting software like Tally, Busy, Zoho, etc., include a **separate TCS ledger** or field in invoice modules — this ensures **clarity**, **transparency**, and **compliance**.

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### ✅ Recommendation:

Even though not explicitly stated in the section, you **must show TCS separately** in the invoice to:

* Avoid tax complications
* Properly issue Form 27D
* Ensure buyer can claim credit

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Let me know if you want a sample **invoice format with TCS** or a **copy of Rule 31 reference**.

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