Surcharge Calculation on Prior Sales

As per Income Tax Act, the Assessee is liable to pay Surcharge, when his turnover exceeds the prescribed threshold limits. In TCS, when the turnover of the Buyer / Lessee exceeds the threshold limit, Surcharge is applicable on the entire amount right from the first transaction.

Tally.ERP 9 automatically calculates Surcharge on the prior transactions once the customer’s turnover exceeds the threshold limit.

To create Sales Voucher

Go to Gateway of Tally > Accounting Vouchers > F8: Sales

1. Press Alt+I for Item Invoice mode.

2. Enter the date and reference.

3. Select the Party from the List of Ledger Accounts in Party’s A/c Name.

4. Select Sales Ledger from the List of Ledger Accounts.

5. VAT/Tax Class field gets updated as per the VAT/Tax Class selected during Sales ledger Creation.

6. Select the Stock Item from the List of Items in Name of Item.

7. Enter the Quantity and the Rate to get the amount in the Amount field.

8. Select the TCS ledger from the List of Ledger Accounts and press enter to view TCS Details screen.

9. In the TCS Details screen, surcharge amount displayed is the total surcharge amount applicable for the current and prior transactions.

Note:

i. Surcharge amount in the above screen includes the surcharge on the prior sales also, as the sales amount exceeds the Surcharge exemption limit of Rs.10,00,000 (Rs.7,50,000 + Rs 3.50,000). (The Collectee Type identified for Chandra Timbers is Association of Persons, where the Surcharge exception limit for Association of Persons is Rs. 10,00,000)

ii. Surcharge is calculated on the TCS amount as follows:

Surcharge Calculation Details

TCS       : Rs.750000*2.5/100 = 18,750

                    Rs.350000*2.5/100 = 8,750

Surcharge: 27,500 (18,750 + 8,750)*10/100 = 2,750

10. In TCS - Bill-wise Details for: TCS @ 2.5% section, accept the default bill details for Type of Ref, Name, Due Date, or Credit Days (By default, 7th of the following month) and Amount.

11. Select the Output VAT ledger from the List of Ledger Accounts.

12. Accept the Default Bill Allocation in the Bill-wise Details screen.

13. Enter Narration, if required.

14. Press Enter to accept and save.