TCS ACCOUNTING

[PAWAN BANSAL]

Dear All,

One of our supplier deduct TCS on bill of goods supplied on 31.3.2021,which was received by us on 3.4.21

TCS is showing in form 26AS.of FY 2021

1)is it mandatory to books TCS amount as is showing in form 26AS,if yes, then how as we have not received materials in that particular year.???

2) can we pass entry of TCS only without purchase entry???

please provide your view

Thanks

[DR.MARIAPPAN GOVINDARAJAN]

You may book on the previous financial year on accrual basis.

If you book in the subsequent year you may take the credit of TCS in the previous financial year.

It is my view. Any other view, if any, is solicited.

AI Summary

Accrual recognition of TCS enables claiming tax credit in the fiscal year when tax was deducted despite later receipt of goods. TCS deducted by a supplier on goods invoiced in one financial year but received in the next should be booked on an accrual basis in the year the tax was deducted and reported; if recorded in the subsequent year, the taxpayer may nonetheless claim the tax credit for the earlier year to which the deduction relates.