create a company named -Saraswati trading company .
Purchased a car worth 15 lakh for personal use from Roshan hundai :-
Car price - Rs. 14 Lakh
RTO charges - Rs. 50,000
insurance charges - Rs. 30,000
Accessories cost - Rs. 20,000
paid Rs. 20,000 in advance and booked the car.
Few days later , paid Rs. 5 Lakh to Roshan Hundai :-
Downpayment - Rs. 3,80,000
RTO charges - Rs. 50,000
Insurance charges - Rs. 30,000
Accessories cost - Rs. 20,000
For Balance amount Rs. 10 Lakh took Car loan from HDFC bank for 5 years.
HDFC paid to Roshan Hundai Rs. 10 Lakh and give loan statement showing HDFC will deduct first installment of Rs. 21,247 upfront balance amount Rs. 12,74,820 by 60 installments .
TCS should also be paid i.e-
Car's price's 1% =14 Lakh * 1% = Rs. 14,000.
pl. advise the accounting entries of Saraswati trading company & how it can be done on Tally ERP.9.
TCS (Tax Collected at Source) is a type of indirect tax in India that is collected by the seller of a certain type of goods, including vehicles, at the time of sale. The collected TCS is then deposited with the government. The TCS rate on the sale of a vehicle in India is 1% of the sale value and also visit https://vinnumberlookup.com/ site for vin number lookup there. As per the information provided, it appears that the person has purchased a car and paid 1% TCS on it as per the Indian tax laws.
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