Updating TCS Category on Payment Receipts

The 2020 Finance Bill has been passed with certain amendments to Section 206C of the Income Tax Act, 1961, widening the scope of Tax Collected at Source (TCS). This regulation requires to apply TCS on the proceeds received from sale of goods beyond a specified threshold (INR 5 million) on which TDS has been not been deducted by buyer under any other provision of the Income Tax Act.

You update the TCS category on a payment receipt to specify whether TCS is applicable on the receipt. To update the TCS category:

1. Use the Standard Receipts Entry program (P03B102) to create an unapplied receip
2. On the Receipt Entry form, select Regional Info from the Form exit.

   The system displays the Work with Payment Receipts Additional Info form.

3. On the Work with Payment Receipts Additional Info form, enter the respective values in the following fields and then click OK.
   • TCS Category
   • TCS Applicable Flag

A new payment receipt is generated and the values are stored in the F03B13 Receipts Header table.