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
07 October 2026
Senior Account Manager

Amplio Invest

Mumbai

M.Com

View Details
Company
ARTICLESHIP 29 October 2026
Article Assistant (CA Inter / CMA Inter) - Thrissur

Varma Raja & Associates

Thrissur

CA Inter

View Details
Company
ARTICLESHIP 23 October 2026
CA Articleship / Article Assistant

M N Rao & Associates LLP

Vijayawada

CA Inter

View Details
Company
30 October 2026
Asst Manager Accounts

Goodwin Pumps India Pvt Ltd

Chengalpattu

CA Inter

View Details
Company
14 October 2026
Accountant

Rize.farm

Bengaluru

B.Com

View Details
Company
28 October 2026
Assistant Director/ Associate Director-Finance & Accounting

Krea University

Chennai

CA

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

RMA And Associates LLP

New Delhi

CA Inter

View Details
Company
08 October 2026
Account Executive

Elite Taxation

New Delhi

CA Foundation

View Details