At times, you will receive an invoice with TCS on it. TCS is charged by the supplier @ 1% of the net value of taxable supplies. Consider below invoice:
As you can see that TCS 1% is computed on Subtotal + CGST + SGST. Follow below steps to create this invoice:
- Create a new tax account 'TCS', mention percentage as 1.18% instead of 1% because this 1% is computed on net value after CGST and SGST. So, after considering the tax percentage of these two accounts (9% + 9%), we have mentioned percentage as 1.18%
- Create a new Tax Group 'GST@18% + TCS' with SGST@9%, CGST@9% and TCS
- Select this tax group while creating the invoice.