TCS @1% ON ROUNDING OFF AMOUNT

[PRUTHVI NARAYAN]

Hello sir/madam

1. We are buying IML from KSBCL, Karnataka and Retail sellers in Karnataka.

KSBCL is rounding off (AROED per unit) while fixing MRP. But KSBCL is not charging 1% TCS on AROED amount and the AROED amount is showing separately in the invoice.

Now, our question is whether the invoice raised by them excluding TCS on AROED amount is correct or not. Will it affect us at a later stage?

regards

PRUTHVI NARAYAN

AI Summary

Tax Compliance Challenge: State Liquor Seller's Price Rounding and TCS Calculation Raises Critical Accounting and Taxation Questions A discussion forum explores Tax Collected at Source (TCS) implications for a state-owned liquor seller rounding off prices. The seller is separating Additional Retailer Overhead and Expenses Discount (AROED) from main invoice and not charging 1% TCS on this amount. Legal analysis suggests TCS should technically apply to total consideration, potentially impacting future tax credit claims. Recommended documenting and clarifying the pricing approach with the seller to prevent potential tax complications.