QUESTION 1
Normally on Sales,Vat is also charged
Suppose Sales made by A to B of 100000+5% Vat
Whether 1% TCS to be collected on 100000 or 105000?
-a-
TCS is applicable on Totam amount collected i.e. 105000
TCS =1% of 105000=1050
-ea-

QUESTION 1 Continued
What is the journal entry in above case?

-a-
Entry for Sales
10-Jun
Party Dr 106050
            To Sales 100000
            To Output Vat 5% 5000
            To TCS Payable 1050

07-Jul

TCS Payable Dr 1000
                   To Bank 1000

16-Jul
Amount Received
Bank Dr 106050
            To Party 106050

-ea-

QUESTION 2
Suppose A makes Sale of 100000+ 5% Vat to B on 10 June
Amount received in Advance by A from B on 25 April
Pass Entry

-a-
25-Apr
Amount Received
Bank Dr 106050
           To Party 105000
           To TCS Receivable 1050


07-May
TCS Payable Dr 1050
                    To Bank 1050

10-Jun
Party Dr 105000
        To Sales 100000
        To Output Vat 5% 5000
-ea-


Case 3
Suppose A makes Sale of 100000 + 5% VAT to B on 10 June
30% Amount received in Advance by A from B on 25 April
Balance Received on 24 August

-a-
25-Apr
Amount Received
Bank Dr 31815 
       To Party 31500 
       To TCS Receivable 315 


07-May
TCS Payable Dr 1315
                  To Bank 1315

10-Jun
Party Dr 105735
          To Sales 100000 
          To Output Vat 5% 5000 
          To TCS Receivable 735



07-Jul
TCS Payable Dr 735
                  To Bank 735

Bank Dr 74235
         To Party 74235


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CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 8 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
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