How to: Set Up Tax Collected at Source
In Microsoft Dynamics NAV, you must set up Tax Collected at Source (TCS) to calculate TCS amounts. You must also set up the following TCS prerequisites before setting up TCS:
A new general ledger account for each type of TCS in the chart of accounts
TCS tax information
TCS rounding precision
Income tax accounting periods
Tax collection account numbers
TCS nature of collections
TCS assessee codes
TCS parties
TCS Concessional codes
Correction types
Nature of Collection (NOC) lines
To set up tax collected at source
In the Search box, enter TCS Setup, and then choose the related link.
Fill in the fields as described in the following table.
Field Description TCS Nature of Collection
The TCS nature of the collection code. This field is to be defined when the rate defined is either concessional or zero as per the certificate issued under section 206C (9) of the Income Tax Act. The value defined in this field is displayed in Form 27EQ.
Assessee Code
The TCS assessee code.
Effective Date
The effective date of the TCS rate.
Concessional Code
The TCS concessional code. This field is required when the rate defined is either concessional or zero as per the certificate issued under section 206C (9) of the Income Tax Act. The value defined in this field is displayed in Form 27EQ. For more information, see Form 27EQ Entry Table.
TCS %
The TCS percentage.
TCS Threshold Amount
The threshold limit for each TCS group. TCS is collected when the total amount of the transactions with the assessee exceeds the threshold limit in the financial year.
Surcharge %
The surcharge rate.
Surcharge Threshold Amount
The surcharge threshold limit for each TCS type. The surcharge will be deducted when the total amount of transactions with the assessee exceeds the threshold limit in the financial year.
eCESS %
The educational cess (eCess) rate.
SHE Cess %
The secondary and higher education cess rate.
TCS Account No.
The relevant TCS payable account.
No. Series
The relevant number series. This field is linked to the TCS Type field. The TCS certificate number will be automatically generated from the number series for each TCS type. The number is useful in tracking the Form 27D certificate.
Contract Amount
The per contract value for each TCS type. The TCS is deducted when the total amount of transactions with the assessee exceeds the per contract value for the threshold amount in a financial year.
TCS Type
The TCS type to define the setup.
Choose the OK button.
See Also
Tasks
How to: Set Up Tax Information
How to: Set Up Rounding Options
How to: Set Up Accounting Periods
How to: Set Up Tax Collection Account Numbers
How to: Set Up Nature of Collections
How to: Set Up Assessee Codes
How to: Set Up Temporary Vendors and Customers
How to: Set Up Concessional Codes
How to: Set Up Correction Types
How to: Set Up Nature of Collection Lines
Concepts
Other Resources
Form 27EQ Entry Table
G/L Account Table
Setting Up G/L Accounts in the Chart of Accounts Window
Chart of Accounts Window