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
CAclubindia
