If we pay TCS on our purchase if we purchase more than 50 lakh from one supplier.
So, my question is what to do with this TCS??
Can I treat as a direct experse?
Menu
TCS on Purchase
Replies (6)
Quick Summary
Purchase account DR
TCS receivable Account Dr
TO PARTY ACCOUNTANT
TCS receivable Account Dr
TO PARTY ACCOUNTANT
But what to do with tcs?
Is this our expense??
Is this our expense??
Tcs is in the form of tax which can be adjusted by the buyer against his taxability.
So it should be shown under the head Duties and taxes which you can adjust at the time of filing your income tax return just like TDS.
So it should be shown under the head Duties and taxes which you can adjust at the time of filing your income tax return just like TDS.
TCS is not your cost as it is refundable at the time of income tax return filing. Show it in Capital A/c.
Thank You very much Sir
Welcome.....
Recent Topics :
- How do you collect documents from clients for ITR
- GST ITC on Construction/ Tenant Specific Renovatio
- GST Treatment and Reporting of Share & Mutual
- AGM Defective Notice
- IMS Rejection of Sales and Sales return
- Taxation of Gift - Father to Daughter
- TDS on Property Purchased above 50lakh
- Accounting Treatment in Tally for Restaurant Sales
- Form 146 required
- Rule 86(B) Applicability
Related Topics :
CAclubindia
