Binarysoft is Authorised Tally Sales & Implementation Partner in India
+91 742 877 9101 or E-mail: tally@binarysoft.com
Office Hours 10:00 am – 6: 00 pm , Mon-Fri
Published on: 30-05-2025
Beginner’s Guide to TCS in TallyPrime: From Basics to Setup
With the introduction of stricter tax regulations and digital tax compliance, Tax Collected at Source (TCS) has become a vital part of many business transactions in India. TallyPrime, a leading accounting software, simplifies the process of managing TCS, making tax collection, tracking, and reporting easy and compliant with Indian statutory laws.
This guide will help you understand what TCS is, when it applies, and how to enable and use it effectively in TallyPrime.
What is TCS?
TCS (Tax Collected at Source) refers to the tax collected by a seller (collector) from the buyer (collectee) at the time of sale of specified goods or services. The seller is then responsible for depositing this tax with the government on behalf of the buyer.
TCS is governed by Section 206C of the Income Tax Act, 1961, and applies only to certain types of goods and transactions as notified by the government. Failure to collect or deposit TCS can result in penalties.
Examples of Transactions Where TCS is Applicable
TCS is applicable to the sale of:
The applicable TCS rate may vary depending on the nature of the transaction and whether the buyer has provided a valid PAN or Aadhaar.
TCS in TallyPrime: Overview
TallyPrime allows businesses to:
With these features, businesses can remain compliant while reducing manual effort and errors in TCS management.
Step-by-Step: Setting Up TCS in TallyPrime
Step 1: Enable TCS in TallyPrime
This enables the TCS module within your company data.
Step 2: Define Nature of Goods
TCS in Tally is applied based on the Nature of Goods.
Assign this nature later to the relevant items or ledgers.
Step 3: Create a TCS Ledger
This ledger will be used in sales invoices to calculate TCS automatically.
Step 4: Update Party Ledgers with PAN Details
This ensures the correct rate is applied and compliance is maintained.
Step 5: Record a Sales Invoice with TCS
The amount collected as TCS will be shown and can be tracked in ledgers and reports.
Step 6: View and File TCS Reports
TallyPrime provides built-in reports for TCS to simplify compliance.
These reports help you file quarterly TCS returns and track the tax collected accurately.
Best Practices
Conclusion
TCS is a crucial compliance component for many businesses, especially those dealing in high-value goods or specific categories like scrap and minerals. With TallyPrime, enabling and managing TCS is seamless and reliable. From defining goods and tax rates to automatic calculation and report generation, the entire TCS lifecycle can be handled within Tally.
By following the steps outlined in this guide, your business can ensure TCS compliance, reduce manual errors, and stay up to date with changing tax regulations.
Let me know if you’d like a sample invoice with TCS, pre-configured Tally data file, or a TCS return filing checklist to help with implementation.
Applicable for CAs / Firms Using GOLD (Multi User ) Only
Renew your license now and upgrade from Tally ERP 9 to Tally Prime for Free!₹ 6750 + 18% GST (₹ 1215)
Applicable for CAs / Firms Using GOLD (Multi User ) Only
Renew your license now and upgrade from Tally ERP 9 to Tally Prime for Free!
₹ 12150
+ 18% GST (₹ 2187)
Unlimited Multi-User Edition For Multiple PCs on LAN Environment
Renew your license now and upgrade from Tally ERP 9 to Tally Prime for Free!₹ 13500 + 18% GST (₹ 2430)
Unlimited Multi-User Edition For Multiple PCs on LAN Environment
Renew your license now and upgrade from Tally ERP 9 to Tally Prime for Free!
₹ 24300
+ 18% GST (₹ 4374)
Single User Edition For Standalone PCs ( Not applicable for Rental License )
Renew your license now and upgrade from Tally ERP 9 to Tally Prime for Free!₹ 4500 + 18% GST (₹ 810)
Single User Edition For Standalone PCs ( Not applicable for Rental License )
Renew your license now and upgrade from Tally ERP 9 to Tally Prime for Free!
₹ 8100
+ 18% GST (₹ 1458)
Tally On Cloud ( Per User Annual)
Now access Tally Prime anytime from anywhere – Just Deploy your Tally License and Tally Data on our Cloud Solution.₹ 7000 + 18% GST (₹ 1260)
Unlimited Multi-User Edition
For EMI options, please Call: +91 742 877 9101 or E-mail: tally@binarysoft.com (10:00 am – 6: 00 pm , Mon-Fri)₹ 67500 + 18% GST (₹ 12150)
Unlimited Multi-User Edition For Multiple PCs on LAN Environment
Renew your license now and upgrade from Tally ERP 9 to Tally Prime for Free!₹ 45000 + 18% GST (₹ 8100)
Single User Edition For Standalone PCs
For EMI options, please Call: +91 742 877 9101 or E-mail: tally@binarysoft.com (10:00 am – 6: 00 pm , Mon-Fri)₹ 22500 + 18% GST (₹ 4050)
(Per User/One Year)
TallyPrime latest release pre-installed₹ 7200 + 18% GST (₹ 1296)
(Two Users/One Year)
TallyPrime latest release pre-installed₹ 14400 + 18% GST (₹ 2592)
(Four Users/One Year)
TallyPrime latest release pre-installed₹ 21600 + 18% GST (₹ 3888)
(Eight Users/One Year )
TallyPrime latest release pre-installed₹ 43200 + 18% GST (₹ 7776)
(Twelve Users/One Year)
TallyPrime latest release pre-installed₹ 64800 + 18% GST (₹ 11664)
(Sixteen Users/One Year)
TallyPrime latest release pre-installed₹ 86400 + 18% GST (₹ 15552)