TCS Tax Calculation (Indian Tax - MS Localisation)

mahesh

Hi Indian Nav experts,

Im facing one issue in TCS (Tax collected at source) tax calculation. (working in Nav 4.0 SP3.)
My client collects TCS when getting payment from Customer.
im getting payment of 10000/- from one customer & TCS is 10 %( 1000/-).
Entries should be
Bank GL Acc Dr. 10000
TCS Receivable GL Acc Dr. 1000
Customer GL Acc. Cr. 11000

Now my problem(actually Navision's problem) is that G/L entries are correct as stated above but Bank Ledger Entries are not correct.

Bank GL Account is debited by 10000 but Bank Acc Ledger entries are with 11000. ](*,)
Please let me know, if you guys also faced this issue or any hotfix from Microsoft.

Thanx a lot in advance,
mahESH jain
http://www.intech-systems.com

ssingla

To my understanding the TCS functionality works like this :
On Sales Invoice : Sales Account will be credited and TCS payable will be credited. The total of both will be debited in Customer Account.

On Payment : Total Amount (Sales Amount +TCS Amount ) will be collected from the customer and debited to the bank account.

I fail to understand what exactly you are trying because if you have charged TCS on sale invoice then it is due from customer and is debited to his account and not to tcs receivable account.

mahesh

The case which you explained in that you are charging when invoicing.

No, i didn't charge TCS when Invoicing.
It should be charged when either invoicing or payment.(whichever is earlier according to Governmnet law).

Im charging when getting payment. Accounting entries are perfect but only bank ledger is not correct.

mahesh

Hi Sandeep,

Please do make one entry in Bank Receipt Voucher as attached image.
Select Doc type: Payment
Doc No., Account Type, Account no., TDS/TCS/Service Tax party type, TDS/TCS/Service Tax party no., TCS Nature of collection, Amount & post entry.
Let me know the effect. Are entries correct in GL entries & Bank ledger entries?

for my bank(SBI), i have setup bank posting group SBI & one account in COA(chart of account).
Problem is that amount in chart of account & Bank account both are different.
Hope you guys got my problem.