How to: Post Tax Collected at Source
Microsoft Dynamics NAV allows you to post Tax Collected at Source (TCS) using:
Sales orders or sales invoices
Cash receipt journals
Sales return orders or credit memos
General journals
TCS is deducted on certain financial transactions involving vendors, one time parties, and customers.
For more information about how to post TCS using general journals, see How to: Post Tax Deducted at Source.
The TCS for the posted transaction can be viewed in the TCS entry table.
The TCS Adjustment Journal window is used to correct the TCS amounts that have been deducted, but not paid to the government. The Update TCS Register window is used to track all of the TCS payments that are paid to the government, including relevant challan details. For more information, see TCS Adjustment Journal Window and Update TCS Register Window.
The following procedure describes how to post TCS using sales orders, but the same steps also apply to posting TCS using sales invoices.
To post tax collected at source using sales orders
In the Search box, enter Sales Orders, and then choose the related link.
On the Home tab, choose New.
On the General FastTab, fill in the required fields as described in the following table.
Field Description No.
The sales order number.
Sell-to Customer No.
The number of the customer that the items are sold to.
Posting Date
The date on which the sales order entry will be posted.
External Document No.
The number that the customer uses to track the sales order.
On the Lines FastTab, fill in the required fields as described in the following table.
Field Description Type
Specify Item to indicate that the line type of the sales order contains an inventory item.
No.
Specify the item number.
Location Code
The code of the location where the items will be situated.
Quantity
The number of items that are specified on the sales document line.
Unit Price Excl. VAT
The unit price of the item, excluding the VAT amount.
TCS Nature of Collection
The TCS code for the nature of collection.
On the Actions tab, in the Functions group, choose Calculate TCS.
To view the calculated TCS, on the Navigate tab, in the Order group, choose Statistics.
On the Actions tab, in the Posting group, choose Post.
In the dialog box, select one of the following options:
Ship
Invoice
Ship and Invoice
The following procedure describes how to post TCS using cash receipt.
To post tax collected at source using cash receipt journals
In the Search box, enter Cash Receipt Journals, and then choose the related link.
Fill in the required fields as described in the following table.
Field Description Batch Name
Specify BANK to indicate the batch name.
Posting Date
The posting date for the entry.
Document Type
Specify Payment to indicate the document type.
Document No.
The journal line document number.
External Document No.
The customer or vendor document number.
Party Type
The type of the party involved.
Part Code
The number for the relevant party type.
TCS Nature of Collection
The TCS nature of collection.
Amount
The total amount of the journal line that includes the VAT amount.
T.C.A.N. No.
The tax collection account number for the TCS collection.
On the Actions tab, in the Posting group, choose Post.
The following procedure describes how to post TCS using return orders, but the same steps also apply to posting TCS using credit memos.
To post tax collected at source using return orders
In the Search box, enter Sales Return Orders, and then choose the related link.
On the Home tab, choose New.
On the General FastTab, fill in the required fields as described in the following table.
Field Description No.
The sales return order number.
Sell-to Customer No.
The number of the customer that the items are sold to.
Posting Date
The posting date for the entry.
External Document No.
The number that the customer uses to track the sales order. You can enter a maximum of 10 alphanumeric characters.
On the Lines FastTab, fill in the required fields as described in the following table.
Field Description Location Code
The code of the location where the items will be situated.
Type
Specify Item to indicate that the line type of the return order contains an inventory item.
No.
The item number.
Quantity
The number of items that are specified on the sales document line.
Unit Price Excl. VAT
The direct unit cost of the item, excluding VAT, on the sales document line.
TCS Nature of Collection
The TCS nature of collection.
On the Invoicing tab, fill in the fields as described in the following table.
Field Description Applies-to Doc. Type
The type of document to which you want to apply the invoice.
Applies-to Doc. No.
The number of the document to which you want to apply the invoice.
If a credit memo is created before remittance of tax to the government, the TCS entries will get reversed proportionately, based on the quantity returned.
If the TCS amount has been remitted to the Income Tax department, the TCS payable account will not be reversed when information is entered in the Applies-to Doc. Type and Applies-to Doc. No. fields.
On the Actions tab, in the Functions group, choose Calculate TCS.
On the Actions tab, in the Posting group, choose Post.
See Also
Tasks
How to: Post Tax Deducted at Source
How to: Set Up Tax Collected at Source
Concepts
Other Resources
TCS Entry Table
Update TCS Register Window
TCS Adjustment Journal Window