Frequently Asked
Questions
Find Solutions to Common Issues Related to taxation - tds tcs data feeding and report
The TCS is being calculated on the net bill amount instead of the taxable amount. What should I do to apply TCS on the taxable amount?
Issue: If you are unable to apply TCS on the taxable amount before GST; it's currently being applied after GST or Nett bill amount. You should know below points.
Step 1: Understand the Issue
Tax Collected at Source (TCS) in India is a tax collected by the seller from the buyer on specific transactions. TCS is usually charged on the total invoice value or the consideration received, which includes GST when it's applicable.
Step 2: Resolve the Issue
If you want to charge TCS on the taxable value (before GST),
Access the Bill Sundry Master and choose the option for TCS (Tax Collected at Source) & modify the master.
Set the calculation basis to Taxable Amount.
Save the Bill Sundry.
Note: It's important to be aware that TCS rules and regulations typically require the tax to be calculated on the net bill amount, including GST. Modifying this calculation may not comply with tax regulations. Therefore, it's advisable to consult with a tax professional or consider the relevant tax laws before making such changes to ensure compliance.
What is the procedure to correctly record TDS on expense vouchers in BUSY?
You can record the TDS entry in the BUSY and created the proper references.
Pls Follow the Below the Steps for TDS Calculation :
Step 1: Click on Administration
Step 2: Then Configuration
Step 3: Then Features and Options
Step 4: Enable the TDS/TCS option
Step 5: Mention the warning for TDS purachse and payment voucher as per your requirement in the bottom.
Step 6: Open the party account in modify mode
Step 7: Then in TDS/TCS window, mention the applicable limit- as per your requirement and payee category.
Step 8: Mention the TDS category in the expense account
Step 9: Book the TDS expense entry through payment or journal voucher. DEBIT the expense account and CREDIT the party account and TDS account.
When you save the voucher the tds reference will get create and can adjust the refernce during the TDS payment.
Step 10: When you do the TDS payment, Then DEBIT the tds acccount and CREDIT the bank account. Adjust the tds reference which you have created in while booking the tds entry.
I want to enter transactions correctly in the TDS module. What steps should I follow?
To record the correct TDS entry in the BUSY and created the proper references.
Pls Follow the Below the Steps for TDS Calculation :
Step 1: Click on Administration
Step 2: Then Configuration
Step 3: Then Features and Options
Step 4: Enable the TDS/TCS option
Step 5: Mention the warning for TDS purachse and payment voucher as per your requirement in the bottom.
Step 6: Open the party account in modify mode
Step 7: Then in TDS/TCS window, mention the applicable limit- as per your requirement and payee category.
Step 8: Mention the TDS category in the expense account
Step 9: Book the TDS expense entry through payment or journal voucher. DEBIT the expense account and CREDIT the party account and TDS account.
When you save the voucher the tds reference will get create and can adjust the refernce during the TDS payment.
Step 10: When you do the TDS payment, Then DEBIT the tds acccount and CREDIT the bank account. Adjust the tds reference which you have created in while booking the tds entry.
What are the TDS settings in BUSY?.
The TDS settings in BUSY refer to the configuration options and parameters that can be adjusted to set up and manage Tax Deducted at Source (TDS) in the software. These settings include options to enable TDS, define TDS categories, set TDS rates, configure TDS applicability for parties, and generate TDS reports. Step 1: You Need to Enable first TDS Go to Administration Menu and click on Configuration option.
Step 2: click on Features / Options and click on TDS/ TCS option.
Step 3: tick on Enable TDS Reporting and also you can create default TDS Categories.
Step 4: Enter TDS other details, compnay address,Contact details.
Step 5: If required enable Warning for TDS in purc. u/s 194Q & TDS inpymt.u/s 194Q
Step 6: Click on Save.
Step 7: enable TDS on Expense booking option and select under TDS on pymnt./purc.u/s 194Q option Applicable from start or Applicable after limit.
Step 8: Select payee Category As Domestic Company or as per the party's details. and click on OK.
What are the different options for applying TCS in the software?
To configure the TCS /TDS configuration should done properly in BUSY and TCS/TDS is enable in the party master.
Pls Follow the Below the Steps for TCS/TDS Calculation :
Step 1: Click on Administration
Step 2: Then Configuration
Step 3: Then Features and Options
Step 4: Enable the TDS/TCS option
Step 5: Mention the warning for TDS purachse and payment voucher as per your requirement in the bottom.
Step 6: Open the party account in modify mode
Step 7: Then in TDS/TCS window, mention the applicable limit- Applicable after limit.Then TDS will get charge if the limit get cross after 50 lakh.
Step 8: Book the TCS entry through sales voucher by adding the TCS bill sundry.When you save the voucher then tcs reference will get create and can adjust the refernce during the receipt voucher.
Step 9: When you do the TCS payment, Then DEBIT the tcs acccount and CREDIT the bank account. Adjust the tcs reference which you have created in while booking the tds entry.
arty/Item Master. Alternatively, you can update it in the configuration window after selecting As Specified Below.
I want to add TCS tax to a sales voucher in BUSY, but I don't see the option. How can I add TCS tax to a voucher?
To use the TCS in the voucher.make sure that TCS configuration should done properly in BUSY and TCS is enable in the party master.
Pls Follow the Below the Steps for TCS Calculation :
Step 1: Click on Administration
Step 2: Then Configuration
Step 3: Then Features and Options
Step 4: Enable the TDS/TCS option
Step 5: Mention the warning for TDS purachse and payment voucher as per your requirement in the bottom.
Step 6: Open the party account in modify mode
Step 7: Then in TDS/TCS window, mention the applicable limit- Applicable after limit.Then TDS will get charge if the limit get cross after 50 lakh.
Step 8: Book the TCS entry through sales voucher by adding the TCS bill sundry.When you save the voucher then tcs reference will get create and can adjust the refernce during the receipt voucher.
Step 9: When you do the TCS payment, Then DEBIT the tcs acccount and CREDIT the bank account. Adjust the tcs reference which you have created in while booking the tds entry.
How do I properly record TDS deductions so that they show up accurately in the TDS reports? What is the right way to do this?
To record the TDS in BUSY, then follow the steps.
Pls Follow the Below the Steps for TDS Calculation :
Step 1: Click on Administration
Step 2: Then Configuration
Step 3: Then Features and Options
Step 4: Enable the TDS/TCS option
Step 5: Mention the warning for TDS purachse and payment voucher as per your requirement in the bottom.
Step 6: Open the party account in modify mode
Step 7: Then in TDS/TCS window, mention the applicable limit- as per your requirement and payee category.
Step 8: Mention the TDS category in the expense account
Step 9: Book the TDS expense entry through payment or journal voucher. DEBIT the expense account and CREDIT the party account and TDS account.
When you save the voucher the tds reference will get create and can adjust the refernce during the TDS payment.
Step 10: When you do the TDS payment, Then DEBIT the tds acccount and CREDIT the bank account. Adjust the tds reference which you have created in while booking the tds entry.
I am confused about the process of recording TDS deductions and linking them to TDS references. Can you explain the steps I need to follow?
To record the TDS in BUSY, then follow the steps.
Pls Follow the Below the Steps for TDS Calculation :
Step 1: Click on Administration
Step 2: Then Configuration
Step 3: Then Features and Options
Step 4: Enable the TDS/TCS option
Step 5: Mention the warning for TDS purachse and payment voucher as per your requirement in the bottom.
Step 6: Open the party account in modify mode
Step 7: Then in TDS/TCS window, mention the applicable limit- as per your requirement and payee category.
Step 8: Mention the TDS category in the expense account
Step 9: Book the TDS expense entry through payment or journal voucher. DEBIT the expense account and CREDIT the party account and TDS account.
When you save the voucher the tds reference will get create and can adjust the refernce during the TDS payment.
Step 10: When you do the TDS payment, Then DEBIT the tds acccount and CREDIT the bank account. Adjust the tds reference which you have created in while booking the tds entry.
The TCS report is not capturing the vendor PAN/TAN details in BUSY Software. Why is it not showing up, and how can I add it?
The TCS report is not capturing the vendor PAN/TAN details in BUSY Software. reason could be if PAN/TAN No. not added in Vendor master. Or while preview report option not selected of show party address and PAN Yes. How to Add PAN/TAN No. of Vendor and how to print on TCS Report. Kindly follow the following Steps.
Step 1: To Add PAN/TAN No. Go to Administration and click on Masters.
Step 2: Click on Account and modify Vendor.
Step 3: check PAN/TAN No. if showing blank enter and click on save.
Step 4: To generate TCS Report Go to Display Menu click on TDS / TCS Reports.
Step 5: Click on TCS Collection Details option
Step 6: Select All Category - All References option
Step 7: Select Stating date, Ending date and Report Status as on date.
Step 8: Select Yes to show party address and PAN option.
Step 9: For TIN or TAN need to add Custom Columns on TCS details Report.
I am unable to apply TCS on the taxable amount before GST. It is getting applied after GST. How can I fix this?
Issue: If you are unable to apply TCS on the taxable amount before GST; it's currently being applied after GST. You should know below points.
Step 1: Understand the Issue
Tax Collected at Source (TCS) in India is a tax collected by the seller from the buyer on specific transactions. TCS is usually charged on the total invoice value or the consideration received, which includes GST when it's applicable.
Step 2: Resolve the Issue
If you want to charge TCS on the taxable value (before GST),
Access the Bill Sundry Master and choose the option for TCS (Tax Collected at Source) & modify the master.
Set the calculation basis to Taxable Amount.
Save the Bill Sundry.
Note: It's important to be aware that TCS rules and regulations typically require the tax to be calculated on the net bill amount, including GST. Modifying this calculation may not comply with tax regulations. Therefore, it's advisable to consult with a tax professional or consider the relevant tax laws before making such changes to ensure compliance.
