In this article, we will see how to incorporate TCS (Tax Collected at Source) in RetailGraph. As per TCS , a seller would be required to collect  tax collected at source (TCS) from October 1, 2020, The Finance Act, 2020 has amended the provisions with effect from October 1, 2020, to provide that a seller of goods shall collect tax at the rate of 0.1 percent (0.075 percent up to March 31, 2021) if the receipt of sale consideration from a buyer exceeds Rs 50 lakh in the financial year.  However, in Non-PAN/Aadhaar cases the TCS rate shall be 1% against 0.1%  as mentioned above.

One needs to get update their current RetailGraph version to 3.2.09.15 or above to apply TCS. In the new Retailgraph version, there are two ways to collect TCS from the buyer, the first one is while making the Receipt and the other one is while making the Sales. We recommend the first option.

There are the following steps which need to be done in RetailGraph to apply TCS in Receipt:

1. TCS Registration :

   First, we have to do TCS registration, and to do the same, we have to go to Start>Accounts>TCS Registration. After clicking on the TCS Registration option, we will get the following window.
   
   
   

In the above image, it can be seen that there is a password required for the registration and the same will be issued by  SWIL according to the details of the firm. Other mentioned details are put in as per the government guidelines for TCS and it may change later if there are any changes in the guidelines. After putting in the password, we need to click on the Register tab to get the TCS registration in RetailGraph.

2. Changes in Account Master:

   We have to checkmark the Apply TCS option to levy TCS on the respective account. We have to go to the Start>Masters>Ledger Account and select the respective account and do the changes as per the following image:

3. Making the Receipt:

   While making the Receipt If the receipt amount of a customer is more than INR 5000000 after
   1 st October 2020 then TCS will be levied to that customer as per provided details in the Registration. Given below is the image of such a Receipt.

4. Create TCS Debit Note:

   This option can be found in the Receipts Module (Start>Receipts>Create TCS Debit Note). Over here, the receipts of a customer will be shown if the total receipt amount of that customer is exceeding INR 5000000 after 1 st  October 2020. In the below-given image, a Receipt of INR 5500000 is seen, so the TCS will be levied on INR 500000 as per details showing in the below image.

To create a Sales Debit Note of the TCS amount, we have to click on the Create tab as shown in the below-given image:

Auto-generated Sales Debit Note of the TCS amount will be shown as per the following image:

So by following the above mentioned simple steps,  TCS can be applied to the Receipt.

Now we will see the steps which need to taken while applying TCS on making Sales Invoices:

1. TCS Registration: As explained above, we have to do the TCS Registration to apply TCS while making the Sales Invoice.
   

2. After getting the TCS registration done, we need to mark the Calculate TCS option in system default. It can be found in the RetailG settings section as shown in the below image :
   

3. Customer Master: In Customer master, an attribute will be added to the Customer automatically while updating its current RetailGraph database to a new RetailGraph version(3.2.09.15 or above) if total sales to the respective customer have crossed as defined in TCS Registration Form. And this attribute needs to be added manually if sales to the customer exceed the amount which has defined in the TCS Registration form later in the current financial year as shown in the below image:

And after clicking on the Attribute Detail tab, the below image appears on the RetailGraph screen:

4. PAN No.:  The license no. that is used for PAN No. in customer master must be selected in the Others section in the System Default as per the following image.

5. Sales Invoice creation:  If purchases of the buyer exceed above INR 5000000 then TCS will be applied to that buyer. In the below given example, it is shown that TCS will be applied to this customer as its total Sales has crossed INR 5000000.

For more details, please book a ticket at  https://support.swildesk.com/portal/en/newticket