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Accounting Entries for TCS

Amit (Student) (46 Points)

20 January 2010

Can anyone help me with Accounting Entries for TCS (tax collection at source) transaction, from both buyer and seller's books. ?

e.g. A sold timber to B worth rs. 10000 with TCS applicable 2%.

entries at Sellers book ?

entries at buyer books ?

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9 Replies

CA.G.Muguntha Narayanan (Internal Auditor at TVS Motors) (2195 Points)
Replied 21 January 2010

In A's Books,

Cash A/c Dr. 9800

TCS by Others A/c Dr 200

To Sales 10000

In B's Books,

Purchases A/c Dr. 10000

To Cash 9800

To TCS 200

1 Like

Bimal Thacker (Proprietor) (762 Points)
Replied 21 January 2010

In A's Book

Cash A/C / B's account Dr. 10,200

To Sales A/C cr. 10,000

To TCS payable A/C cr. 200

In B's Books

Purchase A/c Dr 10,000

TCS receivable A/C Dr. 200

To Cash / A's A/C Cr. 10,200

3 Like

ashish keshav kale (account executive) (24 Points)
Replied 03 May 2010

tcs entries for contractor of toll plaza/ mining n querry/ lease relating to parking lots

Aditya Maheshwari (CA in Practice) (35867 Points)
Replied 03 May 2010

Same as mentioned ago

M.Lokesh (Student) (95 Points)
Replied 03 May 2010

accept with bimal

Gst Otp (7 Points)
Replied 08 December 2017

I believe, TCS is not receivable, it is a payment no need to keep in balance sheet as receivable, since the money goes to seller account. am i right

1 Like

Siddharth Goel (Chartered Accountant) (3026 Points)
Replied 29 June 2018

Hi,

Sales of Rs. 100, GST @ 18%, TCS @ 2%

In the books of Seller:

Customer A/c Dr. 120

To Sales 100

To GST payable 18

To TCS payable 2

In the books of Buyer:

Purchases A/c Dr. 100

TCS A/c Dr. 2

GST input A/c Dr. 18

To Creditors 120

Deposit of TCS by seller:

TCS A/c Dr. 2

To Bank 2

2 Like

vikram (student) (2 Points)
Replied 10 April 2019

can anyone tell me how tcs entry close in books of purchaser

CA Nikki Singh (Chartered Accountant) (12 Points)
Replied 08 January 2021

Just like TDS, TCS amount paid by the buyer to be recorded as Receivable in Books, which will be adjusted with the tax liability for the particular financial year. In case of no tax liability the same can be claimed as refund while filing ITR for such Financial Year.

2 Like