(IND) Understanding TCS

This chapter provides overviews of:

TCS
Process flow for TCS
Software solution for TCS
Setup requirements for TCS

Overview of TCS

Tax collected at source (TCS) is a federal tax that customers are charged on goods. Suppliers that sell the goods are responsible for charging TCS to their customers and collecting the amount, as well as remitting the TCS amount to tax authorities. TCS is applicable either at the time of debiting the customer or receiving the money from the customer during sale of notified goods, whichever is earlier. Suppliers are required to remit the TCS amount to the tax authority and issue the certificate Form 27D to the customer within ten days of receiving the payment.

Process Flow for TCS

This process flow shows the steps that a supplier performs to charge, collect, and remit TCS:

TCS process flow

The process flow for collecting and remitting TCS is different for prepayments. When a customer makes a prepayment without the sales order and invoice, you adjust it with the next invoice for that customer and submit the TCS on that amount to the government.

See (IND) Working with TCS Prepayments and Payments.

Software Solution for TCS

To meet the TCS requirements specified by the tax authorities, the JD Edwards EnterpriseOne programs enable you to:

Create a sales order and calculate TCS for items that are eligible for TCS.
Issue a tax invoice to charge TCS to customers for goods purchased.
Verify and update TCS amount in localized tables
Print Form 27D for customers to acknowledge receipt of TCS on goods sold.
Create a voucher and payment for TCS owed to tax authorities.

Setup Requirements for TCS

This table lists the TCS setup requirements for India:

Setup Requirement	Cross-Reference
Set up tax types and adjustments for TCS.	See Entering Price Adjustment Details for India Taxes.
Map tax adjustments to tax types.	See Entering Details for Price Adjustments.
Enter supplier records for TCS tax authorities.	See Setting Up Tax Authorities.