TCS (Tax Collected at Source)

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This discussion addresses whether Tax Collected at Source (TCS) applies to credit notes when TCS has already been collected on the initial sales invoice and the relevant return filed. The consensus is that TCS is generally not applicable in such scenarios. However, practical challenges arise when there are no subsequent sales or purchases with the same party to adjust the credit note against, requiring careful consideration for proper set-off.

HARDIK SOLANKI

HARDIK SOLANKI (Querist)

22 January 2022 Hello Team,
I have one query that is TCS Applicable on Credit Notes while in related sales invoice TCS already collected and TCS return also filed..?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

22 January 2022 TCS not applicable in such a case.

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A.Senthil Subramanian

A.Senthil Subramanian (Expert)

24 January 2022 Respected CA R Seetharaman sir, please clarify that If the original sales was on Sep 2021 effected, TCS collected and Q2 filed, then by Nov the same turn as Sales return. In this situation what we can do? This also happen in 194Q TDS. So the proper way of set back in TCS/TDS needed.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

24 January 2022 Adjust the TDS/TCS in December quarter considering credit note.

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A.Senthil Subramanian

A.Senthil Subramanian (Expert)

24 January 2022 Yes sir, we are doing like vise. But when there is no next sale or purchases to the same party it will create problem. Only After when the same occurs, we will adjust it. That's the way we are practicing now sir. Thank you sir.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

24 January 2022 You are welcome......

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