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
View answer
Flipkart will deduct 1% Commission on this 70000 i.e. Rs 700
Balance Amount it will pay to Vendor=70000-700=69300
Example 2
Suppose in last Case, there is Sales Return of Rs 20000
View answer
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