With effect from 01st October 2020 TCS (Tax Collected at Source) was introduced, TCS is Income Tax which is required to be collected by the seller (Collector) from the Buyer along with the Price of Goods and applicable taxes. Provisions relating to TCS has been enumerated in section 206C of the Income Tax Act, 1961.
Quicksoft as always was prepared to work well in advance with the help and advice of some petrol-pump dealers like Mr. Manish Kabra of M/s Satya Sai Filling Station, Bhilwara, Rajasthan, who requested us to incorporate the requirements in the software. As per our policy, customer requirements is prime and we always take customer feedback in positive spirit and always incorporate the change request if it is in the interest of community as a whole.
The Oil marketing companies (OMC) started charging TCS to petrol dealers from 1st October, 2020 as all petrol dealers by default have exceeded Rs.50,00,000 (fifty lacs) of threshold limit of payment against the purchase of fuel/goods from OMC between 1st April 2020 and 30th Sept 2020. The software automatically takes care of TCS charges calculation as shown in the screen below:
All the necessary configuration is also provided in the software as some OMC do not round off the TCS amount calculated and some do round off the TCS amount so calculated. The TCS Amount is treated as income tax amount and accordingly the software would then post separate entry for TCS to “TCS Charged” ledger (auto created for users) to find instantly how much TCS has already been paid to OMC and accordingly the same can be claimed at the end of year to arrive at balance income tax payable after deducting the TCS paid from the total liability of income tax payable.
Please visit our blog for detailed information on TCS changes in the ArtRM software.