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.