TaxTMI 
TaxTMI 
TCS on sales if payment received in next financial year
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....CS on sales if payment received in next financial year<br> Query (Issue) Started By: - Ashish Gupta Dated:- 8-1-2021 Last Reply Date:- 18-2-2021 Income Tax<br>Got 7 Replies<br>Income Tax<br>Dear Sir, Most of the people are charging TCS on Sales in the Sales Invoice. TCS on Sales is based on payment collection. If Sales happens in say March 2021 wherein TCS is charged in the invoice and payment is....
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.... done say in May, how is TCS on Sales collected in such case? Since TCS is already charged in invoice in March, it will need to be paid. Also since TCS is based on collection, again compliance issue might come as TCS again becomes payable. 26AS will also become complicated as party to party different systems are followed as some charge TCS on collection and some in the invoice Reply By Ganesha....
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....n Kalyani: The Reply: Sir, in my view, TCS is payable at the time of receipt of payment. The convenient way adopted by some taxpayer is to charge TCS on sale invoice. However, department will demand the tax only as per law. So, a reconciliation is a must to prove correct tax has been paid. Reply By DR.MARIAPPAN GOVINDARAJAN: The Reply: Whether TCS, in your query, is in relation to Income Tax A....
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....ct or GST Act? Reply By Ashish Gupta: The Reply: I am asking in relation to Income Tax Reply By DR.MARIAPPAN GOVINDARAJAN: The Reply: Ok I will revert Reply By DR.MARIAPPAN GOVINDARAJAN: The Reply: In my view as Ganesan said it should be paid on collection of bill only. So you have to pay only on May. whether you have paid the tax on March itself? Reply By CASusheel Gupta: The Reply: Sin....
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....ce TCS is not collected till March end, no liability to deposit. Simply show it as TCS not yet Collected in balance sheet and in next year deposit the amount on collection. CA Susheel Gupta Reply By Ganesh S: The Reply: An additional aspect to be considered is the TCS so collected in the sales invoice might be at a lesser rate prescribed until March 31st 2021. If the payment is received in nex....
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....t year when the TCS rate is at normal rate, the differential tax needs to be collected as the TCS is on collection of sale consideration and not on invoicing.<br> Discussion Forum - Knowledge Sharing ....