Setting up Tax Collection at Source

To set up Tax Collection at Source (TCS), configure the customer and item records that are eligible for TCS and create TCS tax rate rules. To complete TCS setup, perform the following steps in the order specified:

1. Configuring Customer Records that are Eligible for TCS

2. Configuring Item Records that are Eligible for TCS

3. Creating TCS Tax Rate Rules

TCS Subsection Codes

The India Localization SuiteTax Engine SuiteApp supports the following subsection codes under TCS:

• Section 206C (1)

• Section 206C (1C)

• Section 206C (1F)

• Section 206C (1E)

• Section 206C (1G)

• Section 206C (1H)

The SuiteApp includes the default challan codes associated with each subsection code. In the global Search field, enter TCS Subsection to view the list of subsection codes, and enter TCS Challan to view the list of challan codes.

You cannot create section codes or subsection codes but you can create challan codes using the steps mentioned in To create a new challan code:.

Configuring Customer Records that are Eligible for TCS

You must configure the customer records that are eligible for TCS to ensure TCS calculation.

To configure a customer record for TCS:

1. Go to Lists > Relationships > Customers.

2. Click Edit beside a customer.

3. Click the Financial subtab.

4. Check the TCS Eligibility box.

5. (Optional) In the Permanent Account Number (PAN) field, enter PAN.

6. (Optional) In the Aadhar Number field, enter the Aadhar number.

7. (Optional) In the Tax Exemption Certificate field, enter the tax exemption certificate number.

8. Click Save.

Configuring Item Records that are Eligible for TCS

You must configure the item records that are eligible for TCS to ensure TCS calculation on items.

To configure an item record for TCS:

1. Go to Lists > Accounting > Items.

2. Click Edit beside an item.

3. Click the Accounting subtab.

4. Check the TCS Eligibility box.

5. In the TCS Subsection Code field, select a TCS subsection code.

6. In the TCS Challan Code field, select a TCS challan code.

7. Click Save.

Creating TCS Tax Rate Rules

After setting up TCS in customer and items records, you must create TCS tax rate rules to calculate TCS.

To create a TCS tax rate rule:

1. Go to Setup > India Localization > TCS Tax Rate Rules.

2. Enter a name for the rule.

3. Enter description.

4. In the Customer Type field, select a customer type.

5. In the Subsection Code field, select a subsection code.

6. In the Challan Code field, select a challan code.

7. Check the PAN or Aadhar Available box if either PAN or Aadhar is available for the customer.

8. In the Effective From field, enter the start date of the tax rule's validity.

9. In the Valid Until field, enter the end date of the tax rule's validity.

10. In the Threshold Amount field, enter the threshold amount.

11. In the Rate field, enter the tax rate that applies to the rule.

12. Click Save.

When you select an item in a transaction, the subsection code and challan code associated with the item automatically populates in the line item. The subsection code and challan code determine the TCS tax rate rule to apply to an item to calculate TCS.

If you want to create a new challan code, complete the following steps:

To create a new challan code:

1. In the global Search field at the top of any NetSuite page, type New Challan Code.

2. Enter a name for the challan code.

3. In the Subsection Code field, select a subsection code.

4. Click Save.

After setting up TCS, you can apply TCS on transactions. For more information, see Applying TCS on Transactions.

Related Topics

Tax Collection at Source (TCS) for India

Applying TCS on Transactions

General Notices