TCS, TDS, GST journal entries

Hi,

If TDS is 0.1% (194Q), TCS is 1% (206) and GST is 5% on sale of scrap (Non-Manufacturing), I heard both TDS and TCS are applicable on sale of scrap above 60L.I also learnt, when TDS & TCS are required, only TDS is used excepting for rare provisions. So I made journals for them below. Isn't this the correct procedure?

 

  Seller   Buyer
Dr. Bank 6300000 Dr. Scrap Purchase 6000000
Dr. TDS Receivable 6300 Dr. Input GST @ 5% 300000
Cr.Output GST @ 5% 300000 Dr. TCS Receivable 63000
Cr. TCS Payable 63000 Cr. TDS Payable 6300
Cr. Sales 6000000 Cr. Bank 6300000

TDS vs TCS - Understanding the Key Differences (shoonya.com)

Regards

Replies (4)
Quick Summary
This discussion explores the correct journal entries for Tax Deducted at Source (TDS), Tax Collected at Source (TCS), and Goods and Services Tax (GST) when selling scrap. It addresses the applicability of both TDS and TCS on sales exceeding 60 lakhs and clarifies that TDS is generally preferred unless specific provisions dictate otherwise. The conversation also touches upon calculating these taxes on the taxable value (including GST) and mentions using SAP for these entries.

No not at all. tcs is applicable since inception

Ok Mr Sabyasachi. I'll check them out tomorrow. Inception or not, I'll start entries for seller first. And let's me see the out put

Forgot, tds, tcs on GST: I'll calculate them on taxable value not on net sale value. That means 

Nsv+GST= taxable value 

Ok Mr. gomes you do not hv to chk.
use sap

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
05 October 2026
Senior Accountant

Vision IT Peripherals Pvt Ltd

Mumbai

B.Com

View Details
Company
08 October 2026
SALES TELECALLER

HIRE NOVA

Lucknow

Graduate (Any)

View Details
Company
30 September 2026
Senior Accountant

Codeboard Technology

Chennai

B.Com

View Details
Company
16 September 2026
Internal Audit - Team Lead

Consulting & Beyond

Chennai

CA

View Details
Company
ARTICLESHIP 21 September 2026
CA Article Assistant

KK & Company Chartered Accountant

Pune

CA Inter

View Details
Company
ARTICLESHIP 16 September 2026
Article Assistant

MANUJ SHARMA AND COMPANY

Noida

CA Inter

View Details
Company
Featured 21 September 2026
Consultant - Reporting

Finrep Advisors LLP

Mumbai

CA

View Details
Company
ARTICLESHIP 07 October 2026
Article Trainee/ CMA Trainee

RMA And Associates LLP

New Delhi

CA Inter

View Details