GST Series

GST Series: How to calculate TCS?

How to calculate TCS?

 TCS stands for Tax collected at Source. Here we will explain on how to calculate TCS?

Typically a customer who sells Scrap or some other services, needs to be charged with 1% TCS on the selling price. Now this selling price is a confusing factor as each CA / CS treats it different way. So we follow the safest and old way.

For example, we are selling the scrap of Rs 10,000 and the GST applied is GST 12%.

Now the calculation is as below.

Scrap Value           Rs 10,000

GST 12%                 Rs . 1,200

The invoice value or selling price is Rs 11200.00. So the TCS is calculated on this amount.

TCS 1% on this      Rs 112.00

Total Invoice value is Rs 11312.00

Even the eCommerce companies have to charge 1% TCS and the transaction is some what same.