TCS: Tax Collected at Source is the Tax Collected by the Seller from the Buyer during the Sale of Specified Goods.
This Provision is Governed by Section 206C of the Income-Tax Act.
The Seller Collects a Specified Percentage of Tax from the Buyer, which is then deposited with the tax authorities.
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FAQ 1: What is TCS Adjustment?
Ans: TCS Adjustment is applicable for any correction of the TCS Amount, TCS Rate and TCS Base Amount already calculated but Not Paid to the Government Authorities.
FAQ 2: What is TCS Adjustment in Income Tax?
Ans: As per Section 206CCA, a Buyer will be subjected to a Higher Rate of Tax Collection at Source (TCS) if the following conditions are met,
The Buyer has Not filed Income Tax Returns (ITR) for the Two Financial Years preceding the relevant financial year in which TCS is to be collected.
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Hint: You may use TDS Adjustment Journal, following the Same Steps. But main point is, you need to use TDS related Setup and Pages (Screen/Window).
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Read the Short-Blog Post: ➡️https://navisionfunctionalexpert.com/short-blog/f/tcs-entries-in-navision-%7C-business-central
