Company Logo in Tally

Tally.ERP 9


Printing Company Logo On Invoices

Tally.ERP 9 A Release 3.0 or later,


you can print your company’s logo on plain paper as this version supports image
printing. The logo images should be stored in .bmp, .jpg or .jpeg image formats.
By using the image printing feature, you can now create exclusive reports and
Documents with your company’s logo, which will add to their value and render a unique
Identity to each official document.


To configure the logo printing function:

• Go to ‘Gateway of Tally > F11: Features > Accounting Features’.

• Set the option ‘Enable Company Logo’ to ‘Yes’.

Enabling the printing of the company logo
Then the location of the logo needs to be entered in the ‘Company Logo Path’ screen.







Now Make a sales voucher for the purpose of logo printing in invoice mode:

Gateway of Tally > Accounting Voucher > F8 sales voucher.

Then give the command ‘Alt + P’ to enable printing.

An Invoice with a logo ready for printing:

Printing in tally.ERP9 rel. 4.6

Printing

*Tally.ERP9 Release 4.6 brings with it additional ways to zoom in and out of print previews:

*The '+' and '-' keys
*Ctrl+scroll wheel (mouse wheel)
*Shift+scroll wheel (mouse wheel) for horizontal scrolling
Also, the maximum level of zoom-in is increased to 600%. This will solve any visibility
issues faced by users.

DEPOSIT SLIP

HOW TO MAKE  DEPOSIT SLIP IN TALLY 

Deposit Slip

The Deposit Slip option in the Banking menu allows the user to generate the deposit slip for
payments received through cheque/dd which need to be deposited into the bank.
Accessing Deposit Slip

To access Deposit Slip screen,

 Go to Gateway of Tally > Banking > Deposit Slip.

 The Select Bank:

 Select the required Bank account and press Enter.



The Deposit Slip screen displays only those transactions which have Cheque/
DD as Transaction type allocated in the Bank Allocation table in the Receipt
voucher entry.


 Select the required row from the Deposit Slip list and press Enter to open the voucher in
alteration mode.

 F2: Period: Allows to change the period.
 F4: Bank: Allows to select other required Bank from the list.



Printing Deposit Slip / Deposit Slip Report

The user may select All or the required receipts to be included in the Deposit Slip. The Deposit
Slip report will print all the receipts for the selected period.

Printing Deposit Slip

To Print the Deposit Slip:

 Go to Gateway of Tally > Banking > Deposit Slip
 Select the required Bank account from List of Bank.
 The Deposit Slip screen is displayed with the list of receipts.

To include all the receipts in the Deposit Slip:

 Click Print or Press Alt+P.

To include selected receipts in the Deposit Slip:

 Press Spacebar to the required receipt row(s).

 Click Print or Press Alt+P.

SERVICE TAX

SERVICE TAX

Service Tax is a destination based consumption tax in the form of Value Added Tax. Service Tax is
a indirect tax imposed on specified services (taxable services) provided by a service provider
(Company, Individual, Firm etc.).
Service Tax was first brought into force with effect from 1 July 1994. All service providers in India,
except those in the state of Jammu and Kashmir, are required to pay a Service Tax in India.
Initially only three services were brought under the net of service tax and the tax rate was 5%.
Gradually more services came under the ambit of Service Tax. The rate of tax was increased. On
February 24, 2009 in order to give relief to the industry under the impact of economic recession,
the rate of Service Tax was reduced from 12 per cent to 10 per cent.

Scope & Applicability

Scope
Service Tax is charged only on the receipt of the consideration for the services provided / to be
provided (advance receipts). The liability of tax is on the service provider (in some cases service
receiver), i.e. person who is providing the service is liable to pay tax to the government.
Example: Royal Agency provided advertising services of Rs. 1,00,000 to SysImage. On the
service amount of Rs.1,00,000, Royal Agency is liable to pay the tax of Rs. 10,300 @ 10.30%
(10% os Service Tax, 2% of Education Cess, 1% of Secondary Education Cess)
Though the tax liability is on service provider, the tax can be collected by the
service provider from the service receiver.
The service provider does not have to pay service tax on the total bill amount but
only on the payment received.

Applicability
Service tax is applicable on taxable services
1.Provided and taxable in the hands of service provider
2.Received and taxable in the hands of service receiver: Generally it is the service provider who is liable to collect service tax from his customer/client and pay the same to the government. But section 68(2) empowers the government to notify the services with regard to which the service receiver would be held liable to pay service tax to the government. For the below mentioned services the service receiver is liable to pay service tax (ss per Notification 36/2004 ST dated 31.12.2004 as amended from time to time)
Goods Transport Agency service
Business auxiliary service of distribution of mutual fund by a mutual fund distributor or agent
Sponsorship service provided to any body corporate/firm
Taxable services received by any person in India from abroad
Insurance auxiliary service by an insurance agent
The definition of taxable service is different for each class of services, e.g. in case of Stock Broker
agency, any service provided to a investor by buy or sell securities listed on a recognised stock
exchange will be a taxable service.

Registration

As per section 69 of the Finance Act 1994, every person liable for paying service tax has to
register as set out in the rules.
According to Rule 4 of the Service Tax Rules, 1994 following is the manner and time for registration
Application for registration to the concerned superintendent in form ST -1 with in 30 days from the date on which service tax is levied or 30 days from the commencement of business providing a taxable service, which ever is later.
Assessee providing Service from more than one Premises or Office, has to make separate applications for each of such premises or Offices.
If the assess has centralised billing System or Centralised accounting system, then assessee can obtain Centralised Registration covering all the premises or offices.
In case of transfer of business from Registered Assessee to new person, Transferee has to obtain the fresh registration certificate.
For every Registered Assessee there is a provision under Service Tax Rules to Surrender Registration Certificate to Superintendent of Central Excise when he ceases to provide taxable services for which he is registered.

Registration requirement for Small Service Provider (SSP)
A person who is eligible for availing exemption under notification no. 6/2005 is required to apply for service tax registration within 30 days from the date when his turnover of services exceeds rupees 3 lakhs.
Input Service Distributor (ISD) Registration
Service Provider having multiple offices other than from where the services are provided and
wants to distribute the input services and cenvat credit thereon to the other location which is liable
for payment of service tax, a separate registration (in the manner as that of service provider) will
be required for each such office.
Service Tax Assessee Code (Service Tax Registration Number)
Service Tax Assessee Code is a PAN based 15 digit alpha numeric numbers e.g.
AEFCE1567ST001.
The first part denotes (10 characters – alpha numeric) Permanent Account Number issued by
Income tax authorities to the concerned person to whom the Service Tax Registration Number is
to be allotted. Second part comprises of a fixed 2 character alpha code – ST (Service Tax). This
is followed by 3-Character numeric code representing the registered Premises or Office of the
service provider
The Service Tax Registration Number has to be quoted on GAR–7 Challans covering deposit of
Service Tax, Cess and other dues to the Government.
Valuation of Taxable Service
Valuation of the services provides the methodology of arriving at the service amount on which the
applicable service tax to be charged.
Value of the taxable service is determined as under
Consideration fully in Money: The gross amount charged by the service provider for such services provided/to be provided
Consideration not in Money: The Equivalent Value of the Non monetary consideration.
Consideration partly in money and partly in other form: Amount charged monetarily and the Equivalent value of the Non monetary consideration
Consideration not Ascertained: Valuation based on the Valuation Rules (as per section 67, Service Tax (Determination of value) rules, 2006
Consideration Inclusive of Tax: Value of taxable service will be such amount, in addition of service tax payable is equal to Gross amount charged.
Example: Royal Agency provides taxable service for Rs. 1,32,360 inclusive of service tax @
10.30%. The taxable service value shall be computed as shown
Taxable Service Value (1,20,000) = 1,32,360 X (100/110.30)


Charge of Service Tax

As per Section 66 of Finance Act, 1994 tax (Service Tax) @ 10% of the value of taxable service, in
addition, 2% Education Cess and 1% Higher Education Cess is payable on taxable services.
Thus, total service tax is 10.30% and it will be collected in such manner as prescribed.


Time and Mode of Payment

1.By individuals, proprietary firms and partnership firms


Payable on the Amount received during the Quarter              Payable By
1st April to 30th June                                                                5th July
1st July to 30th September                                                         5th October
1st October to 31st December                                                   5th January
1st January to 31st March                                                          31st March


2.By Others

Payable on the Amount received during the Month                              Payable By
On amount received during each month except March                        5th of following month
on amount received during March                                                      31st March


Service Tax shall be paid to the government account through any designated branches of the
authorised banks, along with G.A.R.-7 Challans.

Returns & Time lines

     The Service Tax returns are to be filed half yearly in the prescribed Form ST-3 or Form ST - 3A
1.   Form ST-3 - For all the registered assessee, including Input Service Distributors,
     The returns have to be submitted, along with copies of all GAR 7 challans within 25 days of the
     expiry of the fiscal half-year

     For half year 1st April to 30th September – by 25th October

     For half year 1st October to 31st March – by 25th April.

2.  Form ST-3A -The assessee who is making provisional assessment for any month/quarter submit the           memorandum in from ST-3A by providing the details of difference between the provisional amount of service tax deposited and actual amount of service tax payable for each month along with the half yearly return in Form ST - 3.

Why is Tally the best for basic Financial Management?

Why is Tally the best for basic Financial Management?



Tally.ERP 9 provides you the capability to generate various financial statements and Management
Information system reports, thereby facilitating better management, effective control and wellinformed
decisions. Following are the some of salient features, which makes Tally.ERP 9 best for
basic financial management.
􀂇 Fund Flows
􀂇 Receivables Turnover (Payment performance of debtors)
􀂇 Branch Accounting
􀂇 Flexible Period Accounting
􀂇 Budgeting and Control
􀂇 Cost centers / Profit centers with multiple Cost Categories
􀂇 Ratio Analysis
􀂇 Scenario Management.


26
Lesson 2:Why is Tally the best for basic Financial Management?
Tally.ERP 9 provides you the capability to generate various financial statements and Management
Information system reports, thereby facilitating better management, effective control and wellinformed
decisions. Following are the some of salient features, which makes Tally.ERP 9 best for
basic financial management.
􀂇 Fund Flows
􀂇 Receivables Turnover (Payment performance of debtors)
􀂇 Branch Accounting
􀂇 Flexible Period Accounting
􀂇 Budgeting and Control
􀂇 Cost centers / Profit centers with multiple Cost Categories
􀂇 Ratio Analysis
􀂇 Scenario Management

2.1 Fund Flows
A Fund Flow statement reflects the movement in sources and application of funds which impacts
the business's working capital and cash position. It includes operational funds, increase and
decrease in inventories, creditors/debtors. This statement reveals the sources of the Funds and
their applications. Tally.ERP 9 tracks automatically all transactions entered and readily provides a
Funds Flow Statement.
To view Fund Flow Statement,
Go to Gateway of Tally > Display > Cash / Funds Flow > Funds Flow
􀂇 Select any month
􀂇 Press Enter





2.2 Payment performance of Debtors (Receivables Turnover)

Tally.ERP 9 tracks the payment performance of all debtors and generates report containing information
in respect of average time taken by the debtors to pay back their debts. The payment performance
of debtors is calculated in two ways.
.. Using Receivables formula: Tally.ERP 9 calculates the payment performance of your
debtors using the following formula,
Payment performance by formula: (closing balance / total sales) * nos of days
.. Or calculates the performance of the debtors using the actual bill cleared date.
To view Receivables turnover,
Go to Gateway of Tally > Ratio Analysis
.. Select Recv. Turnover in days (payment performance of Debtors)
.. Press Alt+F1 for detailed view.



2.3 Branch Accounting
Tally.ERP 9 provides you a seamless way of handling branch accounts. Transactions between
branches or offices are accounted by debiting the receiving branches accounts and crediting the
branches providing the service/products. These accounting entries result in a nil effect on the
HO's account books when the branch accounts are consolidated. If there is a difference in the
account, it is reconciled through a process of branch reconciliation.
For example, create two branch ledgers, Branch A and Branch B. You may account the transfer
of funds from Branch A to Branch B in the books of accounts, by debiting Branch B which in
turn, credits Branch A in its books. There is no net effect on the combined books, when the
accounts of the two branches are consolidated.



2.4 Flexible Period Accounting
Tally.ERP 9 is one of the most flexible accounting packages available and this can be illustrated
by the fact that it can handle multiple periods in a single company. Once a company is created you
can specify any range of dates and obtain reports for that period. These date range can also be
across multiple financial years. i.e. you can get a report for monthly, quarterly, half-yearly or
annually or for 18 months or 24 months and so on.
Example:
Go to Gateway of Tally > Profit & Loss A/c.
.. Select F2: Period and specify the date range to view the report.



2.5 Budgeting and Control
Businesses need to control their expenses based on income levels and monitor variances.
Budgets in Tally.ERP 9 helps you compare the actual financial performance versus budgeted
figures and obtain variance reports. You can define multiple budgets (e.g. Optimistic Budget,
Realistic Budget) or even create budgets for different periods. The budget values can be defined
for each Group as well as for all Ledgers.
To configure for budgets,
Go to Gateway of Tally > F11: Features > F1: Accounting Features
􀂇 Set parameter Maintain Budgets and Controls to Yes
To create budgets,
Go to Gateway of Tally > Accounts Info. > Budgets > Create
􀂇 Specify a name for the budget
􀂇 Specify a date range for the budget

􀂇 Set Yes to Groups / Ledgers and assign budget to selected groups/ledgers
To view budget reports,
􀂇 Select any report (Balance Sheet, Profit and Loss A/c, Trial Balance)
􀂇 Select Alt + C (New Column)
􀂇 Specify details for period, Currency and Method of Stock Valuation. (Default or as per
requirement)
􀂇 Select the created budget name for Types of Value to show
􀂇 Set Show Variance to No



Variance Analysis
Once you have created Budgets, you can view the Variance Analysis Report which provides information
on the difference between the actual versus the budgeted figures. This report helps management
to figure out variances and work to remedy the situation with the ability to drill down to
the voucher level the user is able to understand which particular transaction or group of transaction
brought about the variation.

To view a variance analysis report, you may set the option Show Variance to Yes, as explained above or follow the steps given below :
Go to Gateway of Tally > Display > Trial Balance/Account Books (Group Summary)
􀂇 Select the Budget Variance (Alt + B) - Type of budget


2.6 Cost centers / Profit centers with multiple Cost Categories
In Tally.ERP 9 you can allocate transactions (especially those which are revenue in nature) to particular
Cost Centres, which will help you in extracting reports for that Cost Centre (Profit Centre).
Cost Centers could generally be a Unit / Division / Department / Function / Activity etc in the
organization or even Sales Executives, to which transactions (generally transactions which are
revenue in nature) are allocated.
You can also compare one cost centre with the other. Hence cost centers will provide the management
with information regarding their performance. With cost categories enabled, parallel allocation
of the same expense is possible between different cost centres.To view Cost Centre Break-Up,
Go to Gateway of Tally > Display > Statements of Accounts > Cost Centres > Cost Centre
Break-Up.


2.6.1 Cost Category
In many cases, you would like to allocate a transaction to more than one cost centres. Especially,
if you want to track revenue either based on location and person or brand and type of product,
Tally.ERP 9 provides you a facility called Cost Categories. This facility enables you to allocate
costs to parallel sets of cost centres i.e., the same amount can be allocated to more than one cost
centre.
For example., Create two categories, one by the name of Administration and another by the
name Accounts under Primary Cost Category. Create Employees or persons under the
respective cost categories and enter a payment transaction for a ledger account for which cost
centres are applicable.
􀂇 Select the relevant Cost Category and Cost Centre during Voucher Entry

To view Cost Category summary,
Go to Gateway of Tally > Display > Statements of Accounts > Cost Centres > Category
Summary.


2.7 Ratio Analysis
Ratio Analysis is an indicator on the operating performance of your business and provides information
on critical ratios in a single report. You can analyze the ratios and the business performance
using this information, viz., operating cost percentage, return on working capital and so on,
to aid critical decisions making. Not only does the internal management find the information
useful, but also external agencies like banks, financial institutions etc.
To View Ratio Analysis Report,
Go to Gateway of Tally > Ratio Analysis.


2.8 Scenario Management
Scenario Management is the management tool provided in Tally.ERP 9 with the help of which you
can create multiple scenarios for the purpose of forecasting or to view provisional reports. This
can be done by selectively including certain types of vouchers, which will in no way affect the
regular books. The vouchers that are used in scenario management are
1.Optional Vouchers
2.Memorandum Vouchers
3.Reversing Journals
To configure for Scenarios,
Go to Gateway of Tally > F11: Features > F1: Accounting Features
􀂇 Set Use Reversing Journals and Optional Vouchers to Yes


To create a Scenario:
Go to Gateway of Tally > Accounts Info. > Scenarios > Create
􀂇 Specify the name of the scenario
􀂇 Set parameter Include Actuals to Yes/No (as required)
􀂇 Set parameters relating to Exclude forex gains/loss and Exclude inventory tracking to
Yes/No (as required)
􀂇 Specify the voucher types to be included/excluded (Use Exclude option only for those
Voucher Types that have been included previously).
To view Scenarios,
􀂇 Select any report (Balance Sheet, Profit and Loss A/c, Cost Centre and so on)
􀂇 Select Alt + C (New Column)
􀂇 Select the scenario
􀂇 Set parameter Show Variance to Yes/No.


Reversing Journals and Optional vouchers are both non-accounting vouchers and hence will not
affect your books of accounts in any manner. The reversing Journal is a separate Voucher Type.
Why is Tally the best ?
37
This voucher is effective only when called for in reports as a part of the scenario management. In
case of Reversing Journals, you can specify the date till which it is applicable.
To enter a Reversal Journal,
Go to Gateway of Tally > Accounting Vouchers > F10: Rev Jrnl.
.. Complete the transaction and specify a date till which it is applicable
To select an optional voucher,
.. Go to Gateway of Tally > Accounting Vouchers >
.. Press Ctrl + L: Optional to mark the chosen voucher as optional
This voucher is used when you have to enter a transaction but have incomplete information or the
transaction is not yet completed. It can be regularized at any time, by going into the alteration
mode and clicking on Regular (Ctrl+L) option.
38

The new tds rates chart

TDS for deductee type Company ( Resident),Artificial judicial persons,Association of persons,Body of individuals,CO-Operative society.
Section Nature of Deduction Excemption Limit Single Bill Value Limit TDS % Surcharge % Surcharge Excemption Limit Education Cess % Secondary Edu cess
194H Commision or Brockerage 2500 0 10 0 0 0 0
194J Fees for Professional & Techenical Service 20000 0 10 0 0 0 0
193 Interest on securities 2500 0 10 0 0 0 0
194A Interest otherthan interest on securities 5000 0 10 0 0 0 0
194A Interest from a banking company 10000 0 10 0 0 0 0
194C Payment to contractors otherthan advertisement 50000 20000 2 0 0 0 0
194C Advertisement Contractors 20000 0 2 0 0 0 0
194C Payment to sub contractors 50000 20000 2 0 0 0 0
194I Rent of Land, building or furniture 120000 0 10 0 0 0 0
194I Rent of Plant , machinery or equipment 120000 0 2 0 0 0 0
TDS for deductee type Partnership firm ie, Deduction against payments made to Partnership firm
In case of parntership firm there is a difference in excemption limit for sec 194c , the rset of the things are same as first table.
Section Nature of Deduction Excemption Limit Single Bill Value Limit TDS % Surcharge % Surcharge Excemption Limit Education Cess % Secondary Edu cess
194C Payment to contractors otherthan advertisement 20000 20000 2 0 0 0 0
194C Advertisement Contractors 20000 0 2 0 0 0 0
194C Payment to sub contractors 50000 20000 2 0 0 0 0
TDS for deductee type Local Authority ie, Deduction against payments made to Local authority
In case of Local Authority there is a difference in excemption limit for section 194c , the rest of the things are same as first table.
Section Nature of Deduction Excemption Limit Single Bill Value Limit TDS % Surcharge % Surcharge Excemption Limit Education Cess % Secondary Edu cess
194C Payment to contractors otherthan advertisement 50000 20000 2 0 0 0 0
194C Advertisement Contractors 20000 0 2 0 0 0 0
194C Payment to sub contractors 20000 20000 2 0 0 0 0
TDS for deductee type Individual/HUFIe, Deduction against payments made to Individual/HUF
In case of individual /HUF there is a differemce in tds rate and excemption limit under section 194c, rest of the things are same as 1st table for individual /HUF
Section Nature of Deduction Excemption Limit Single Bill Value Limit TDS % Surcharge % Surcharge Excemption Limit Education Cess % Secondary Edu cess
194C Payment to contractors otherthan advertisement 50000 20000 1 0 0 0 0
194C Advertisement Contractors 20000 0 1 0 0 0 0
194C Payment to sub contractors 20000 20000 1 0 0 0 0

When is surcharge and cess is applicable as per new tds rates
1. Payment made to a non resident company below 1 crore cess is applicable.
2. Payment made to a non resident company above 1 crore surcharge @ 2.5 % cess 2+1 is applicable.
3. .Cess is applicable for payment made to non resident non corporate.
4. Cess is applicable for salary payment to resident , non corporate.
Due date of Payments of TDS
Tax deducted , should be paid to government within seven days from the last day of the month of deduction.Where as the amount deducted for the month of march should be paid on or before the due date of filing income tax return.
Consequence of failure in deducting tax from source .
The failure in deduction of tax from source will lead to dis-allowance of claim of entire expenditure pertaining to TDS and its addition to total income as provided u/s.40(a)(ia) of the income tax Act along with the interest and penalty as per IT act 1961.

TCS (Tax Collected at Source)

TCS (Tax Collected at Source)
Introduction
TCS is the Tax Collected at Source by the seller (collector) from the buyer/ lessee (collectee/ payee). The goods are as specified under section 206C of the Income Tax Act, 1961.
If the purchase value of goods is X, the amount payable by the buyer is X+Y, where Y is the value of tax at source. The seller deposits Y (tax collected at source) at any designated branch of banks authorized to receive the payment.
The seller, lessor or licensor, is responsible for the collection of tax from the buyer, lessee or licensee. The tax is collected for sale of goods, on transactions, receipt of amount from the buyer in cash or issue of cheque, draft or any other mode, whichever is earlier.

Classification of Seller for TCS
Under TCS, a seller is defined as any of the following:
o Central Government
o State Government
o Any Local Authority
o Any Statutory Corporation or Authority
o Any Company
o Any Partnership Firm
o Any Co-operative Society
o Any individual/HUF whose total sales or gross receipts exceed the prescribed monetary limits as specified under section 44AB during the previous year
Classification of Buyer for TCS
A buyer is classified as a person who obtains goods or the right to receive goods in any sale, auction, tender or any other mode. The following are not included:
o Public Sector Companies
o Central Government
o State Government
o Embassy of High Commission, Consulate and other Trade Representation of a Foreign State
o Any Club, such as social clubs, sports clubs and the like
Goods and Transactions classified under TCS
Goods and transactions classified under TCS are listed below:
o Alcoholic liquor for human consumption including Indian Made Foreign Liquor (IMFL)
o Tendu leaves
o Timber obtained under a forest lease
o Timber obtained by any mode other than under a forest lease
o Any other forest produce not being Timber or Tendu
o Scrap (Scrap means waste and scrap from the manufacture or mechanical working of materials which is usable as such because of breakage, cutting up, wear and tear and other reasons)
o Licensing or leasing of Parking Lot, Toll Plaza
o Mining and quarrying

Certificate of TCS
The certificate of collection of tax at source has to be submitted in Form No-27D by persons collecting tax at source within a week from the last day of the month in which the tax was collected.
If there is more than one certificate to be issued to a buyer for tax collected at source with respect to the period ending September 30 and March 31 in the financial year, then the person collecting the tax on request from the buyer can issue a consolidated certificate within one month from the end of such period.
If an issued TCS certificate is lost, the person collecting tax at source may issue a duplicate certificate on plain paper, with necessary details as contained in Form-27D.
The Assessing Officer (AO), before giving credit for the tax collected at source on the basis of the duplicate certificate, has to get the payment certified and obtain an Indemnity Bond from the assessee.


TCS Exemptions
TCS can be totally exempted or fixed at a lower rate under some circumstances.
Total Exemption: No TCS Collection
A declaration by the buyer in Form Number 27C (in duplicate) has to be made for total exemption. The declaration is if the goods listed are to be used for the purpose of manufacturing or processing and not trading. A copy of the declaration has to be given to the person collecting tax.
The person collecting this declaration form has to submit the copy to the authorities concerned on or before the seventh day of the following month.
Lower Rate of TCS
The buyer (Collectee) can apply to the Assessing Officer (AO) for a lower rate, using Form No.13, subject to the condition that the AO is convinced that the total income of the buyer (Collectee) justifies the lower rate. The AO may issue a certificate, specifying the rate of collection.
Payment of TCS to the Government
The tax collected is to be paid to the Central Government within one week of the last day of the month in which the tax was collected. This payment is made in any branch of Reserve Bank of India (RBI), State Bank of India (SBI), or any other authorised bank. The payment is made accompanied by income tax challan 281. If the tax is collected on behalf of the Government, then the amount can be paid without the income tax challan.
Electronic TCS (e-TCS)
E-TCS is the filing of TCS returns using electronic media. It is mandatory for corporate and government collectors to furnish TCS returns in electronic form, from financial year 2004-2005. Collectors (other than government and corporates) may file TCS returns in electronic or physical form.
NSDL collects the e-TCS returns from the Collectors on behalf of the Income Tax Department.
TCS returns on computer media for e-TCS
TCS returns filed using computers should be in TCS specific form formats and must contain all the information, details and particulars specified in such forms.
Computer media specifications are as follows (any of these):
• CD ROM of capacity 650 MB or more
• 4mm 2GB/4GB (90M/120M) DAT Cartridge
• 3.5 Inches, 1.44 MB floppy diskette.
The returns must be accompanied by Form No.27B and verified.
Filing of TCS Returns
TCS returns are to be filed quarterly, in addition to annual returns.
Form Periodicity Due Date
Form 27EQ Quarterly On or before 15th July, 15th October, 15th January and 30th April.
Form 27 E Annual On or before 30th June, following the financial year.
Form 27B Annual / Quarterly Filed in physical form with each return i.e., Form 27E and Form 27EQ.

TCS in Tally
Tally supports TCS and is a simple and easy-to-use feature. The complexities of TCS are handled by Tally making it easier for you to maintain records and file TCS returns.
Tally calculates TCS in transactions, where ever applicable. Tally also generates Print and File TCS forms and reports (Statutory and MIS).
Features of TCS in Tally
TCS in Tally has the following features:
• Simple and easy-to-use.
• Maintain TCS records.
• Lower/No Collection of TCS and Exemption Limit on Surcharge.
• TCS Helper facility to pay TCS.
• Print TCS Challan from Tally.
• Generate TCS returns automatically from Tally and file.
• E-TCS (electronic format) filing facility provided in Tally.
• Generate Statutory Reports from Tally: Form 27D, E-TCS filing and Form 27B.
• TCS Reconciliation Reports: TCS Challan Reconciliation and Form 27D Reconciliation
• TCS Display Reports:
o Statutory Masters: Collectee Types and TCS Nature of Goods
o MIS Reports: TCS Payables and TCS Ledger Outstandings

Enabling TCS in Tally
To enable TCS in Tally:
1. Go to Gateway of Tally
2. Press F11 or click F11: Features > Statutory & Taxation to display the Company Operations Alteration screen.
3. Enter Yes in Enable TCS and Set/Alter TCS Details
4. Enter the Company TCS Collector Details.
5. Enter the Tax Assessment Number. The Tax Assessment Number (TAN) is a 10-digit alphanumeric number, issued by the Income Tax Department (ITD) to the collectors.
6. Enter the Income Tax Circle/Ward (TCS). This is issued by the Income Tax Department
7. Select the Collector Type from the List of Company Type.
8. Enter the Name of person responsible for filing the TCS returns.
9. Enter the Designation of the person responsible for filing of the TCS returns.
10. Press Enter and Accept to save.