Set TCS Master In Tally Prime | Learn How To Record TCS Transactions In Tally Prime Course

TCS is the Tax Collected at Source by the seller (collector) from the buyer/lessee (collectee/payee). The goods are as specified under section 206C of the Income Tax Act, 1961.  

If the purchase value of goods is , the amount payable by the buyer is X+Y, where Y is the value of tax at source. The seller deposits Y (tax collected at source) at any designated branch of banks authorised to receive the payment.

The seller, lessor or licensor, is responsible for the collection of tax from the buyer, lessee or licensee. The tax is collected for sale of goods, on transactions, receipt of amount from the buyer in cash or issue of cheque, draft or any other mode, whichever is earlier. 

Under TCS, a seller is defined as any of the following: 

 • Central Government 

 • State Government 

 • Any Local Authority 

 • Any Statutory Corporation or Authority 

 • Any Company 

 • Any partnership Firm 

 • Any Co-operative Society 

 • Any individual/HUF whose total sales or gross receipts exceed the prescribed monetary limits as specified under section 44AB during the previous year


Note : A buyer is classified as a person who obtains goods or the right to receive goods in any sale, auction, tender or any other mode. 
The following are not included: 
 • Public Sector Companies 
 • Center Government 
 • State Government 
 • Embassy of High Commission, Consulate and other Trade Representation of a Foreign State 
 • Any Club, such as social clubs, sports clubs and the like

In This Post You Will Learn "How To Record TCS Tax Transaction In Tally Prime Step By Step Guide.

Step 1 Create Company In Tally


Step 2 Enable TCS In Tally Prime By Press F11 Key

After Create Company You Have To Enable TCS Tax Feature In Tally Prime For Record TCS Tax Transactions. Press F11  Key For Enable TCS Tax In Tally Prime. 

As You Tap Yes Then You Have To Fill TDS Details.

Step 3 TCS Details And Responsible Personal Name  Set Up 

As You Press Yes - On Enable Tax Deducted At Source (TDS), Here Fill These Details Like This

Note : Set / Alter Details Of Person Responsible 


Step 4 Ledgers Creation In Tally Prime 

4.1 TCS On Purchase Ledger Create 

Gateway Of Tally >> Create >> Ledger 
Select Group And Press CTRL + Enter For Direct Alter Group Details. After This You Will Eligible For Fill Percentage Calculation So First Alter Group Do As Bellow Shown. 
Note : Tap On Current Assets & Press CTRL + Enter 


4.1.1  Group Alteration Current Assets 

Tap Yes After Select " Used for calculation (for example : taxes , discount) 

Fill Percentage 

Step 4.2  Sundry Creditor Ledger Creation SKB Builders

Gateway Of Tally >> Create >> Ledger 


Step 4.3 Purchase Ledger Creation Purchase A/c 

Gateway Of Tally >> Create >> Ledger 


Step 5 Item Group Creation Hardware 

Gateway Of Tally >> Create >> Stock Group


Step 6 Item Unit Creation 

Gateway Of Tally >> Create >> Unit 


6.1 Unit Number Create 

Gateway Of Tally >> Create >> Unit Create Nos 


Step 7 Stock Item Creation 

Gateway Of Tally >> Create >> Stock Item


Step 8 Item Create Mouse 

Gateway Of Tally >> Create >> Stock Item Mouse 


Step 9 Take Purchase Voucher 

Gateway Of Tally >> Vouchers >> Purchase 


9.1 Press CTRL H And Choose Voucher Mode Select Item Invoice 

Gateway Of Tally >> Vouchers >> Purchase  >>  Press CTRL + H Select Item Invoice 


Step 10 Fill Purchase Voucher Like This Include TCS On Purchase Ledger 

Gateway Of Tally >> Vouchers >> Purchase 



Enable TCS In Tally  For Sale Invoice 

Step 11 TCS Nature Of Payment 

Gateway Of Tally >> Create >> TCS Nature Of Payment >> Create 



Step 11 Sales Ledger Creation 

Gateway Of Tally >> Create >> Ledger 


Step 12 Sundry Debtor Ledger Creation 

Gateway Of Tally >> Create >> Ledger 


Step 13 TCS Ledger Creation 

Gateway Of Tally >> Create >> Ledger 


Step 14 Pass Sales Voucher 

Gateway Of Tally >> Vouchers >> Sales