Does TDS under Section 194Q still apply to purchases of goods?

Yes. While TCS under 206C(1H) was abolished, the corresponding TDS provision under Section 194Q (0.1% TDS on purchases exceeding ₹50 Lakhs) continues to remain applicable. Buyers meeting the criteria must still deduct TDS.

How do I adjust TCS collected in error after April 2025?

If you accidentally collected TCS in FY 2025-26, you must issue a Credit Note to the buyer to reverse the TCS amount, debiting your TCS Payable ledger and crediting the buyer's ledger.

What is the TrulyInvoice flat pricing?

TrulyInvoice charges a flat rate of plans starting at ₹399/month for Lite (1,000 pages) and ₹599/month for Plus (2,000 pages), enabling automated data entry directly to Tally Prime.

TCS on Sale of Goods Removed From April 2025: What Now?

Tax Collected at Source (TCS) is a system under the Income Tax Act where the seller collects tax from the buyer at the time of sale. For several years, Section 206C(1H) required large businesses to collect TCS on high-value sales of goods. However, recent Union Budget updates have restructured these provisions.

The Major Update: Section 206C(1H) Abolished

Under the Finance Act 2025, the Indian Government **abolished Section 206C(1H)** representing TCS on the sale of goods.

Key Details of the Removal:

Effective Date: 1st April 2025.
The Old Provision: Sellers with a turnover exceeding ₹10 Crore had to collect TCS at 0.1% (1% if PAN was missing) from buyers whose cumulative purchase crossed ₹50 Lakhs in a year.
What changes: Starting FY 2025-26, you no longer need to calculate, collect, or remit 0.1% TCS on standard sales of goods.

TCS Provisions Still Applicable in FY 2025-26

It is critical to note that the removal applies *only* to the broad category of "sale of goods" under Section 206C(1H). Other specific TCS provisions remain fully active:

Foreign Remittances (LRS) u/s 206C(1G): TCS continues to apply to money sent abroad under the Liberalised Remittance Scheme (5% or 20% depending on thresholds).
Sale of Luxury Motor Vehicles: TCS at 1% applies to sales of motor vehicles exceeding ₹10 Lakhs in value.
Specific Goods: TCS remains applicable on scrap (1%), alcoholic liquor for human consumption (1%), timber (2.5%), and tendu leaves (5%).

Action Steps: Disabling TCS in Tally Prime

To ensure your invoices generated after April 2025 are compliant and do not include TCS calculations on goods:

Step 1: Disable TCS in Company Settings

Open Tally Prime and select your company.
Press F11 (Features) > Set "Enable Tax Collected at Source (TCS)" to No if you do not sell any other TCS-applicable goods (like scrap).
If you do sell scrap, keep it enabled but open your standard stock item classifications and set TCS Applicability to Not Applicable.

Step 2: Update Invoicing Templates

Ensure your sales voucher types and Voucher Classes do not allocate the additional TCS ledger line automatically during sales bill drafting.