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TCS is to be charged on Net Value of Taxable Supplies

Net Value of Taxable Supplies

=

Sales (Aggregate Value of Taxable Supplies Made)

Less

Sales Return (Aggregate Value of Taxable Supplies Returned)

Note:- Exempt Sales not covered, only taxable sales covered

Example 1

Flipkart Sells goods to customer for Rs 100000

It charges Rs 30000 Commission and pays Balance to Vendor

Hence, the amount payable to Vendor is 70000

What is TCS to be deposited

-a-

Flipkart will deduct 1% Commission on this 70000 i.e. Rs 700

Balance Amount it will pay to Vendor=70000-700=69300

-ea-

Example 2

Suppose in last Case, there is Sales Return of Rs 20000

-a-

Net Amount Payable to Vendor=70000-20000=50000

Flipkart will deduct 1% Commission on this 5000 i.e. Rs 500

Balance Amount it will pay to Vendor=70000-500=69500

-ea-

  1. GST - Goods and Services Tax, India
  2. GST Computation & Accounting
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CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 7 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
  • mohd afridi's image

     

       TCS computation in case of GST 

        me vendor payment 70000-20000=50000

        Commisiion @1 % on 50000=500

        so we'll pay 50000-500=49500 Finaly

    View answer
  • mohd afridi's image

     

       Dear Sir,

                       What is Rate of TCS in GST Different type's Business

                       plz give me rply kya is ka bhi koi chart hota hai TDS ke Chart ki tarah.

    View answer
  • Anand Hurgat's image
    In example no 2 - The balance amount payble to vendor is rs 70000, why? It should be 50000
    View answer
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