TCS on Sales of Goods withdrawn from 1-4-2025 Finsys ERP

Major TCS Changes from April 1, 2025: Removed on Sales, and simplify compliance for businesses and taxpayers.

Extract from the Memorandum to the Union Budget 2025 released by Govt of India

Extract from the Memorandum to the Union Budget 2025 released by Govt of India

XIII. Reduction in compliance burden by omission of TCS on sale of specified goods.

1. Sub-section (1H) of section 206C of the Act, used to require ( till 31-3-2025)  any person being a seller who receives consideration for sale of any goods of the value or aggregate of value exceeding Rs 50 lakhs in any previous year, to collect tax from the buyer at the rate of 0.1% of the sale consideration exceeding Rs 50 lakhs, subject to certain conditions.

2. Section 194Q of the Act, requires any person being a buyer, to deduct tax at the rate of 0.1%, on payment made to a resident seller, for the purchase of any goods of the value or aggregate of value exceeding fifty lakh rupees in any previous year .

3. Sub-section (1H) of section 206C mandates tax collection at source (TCS) by a seller while Section 194Q provides for tax deduction at source (TDS) by a buyer on the same transaction.
4. Further, it is provided in sub-section (1H) of section 206C of the Act that the provision will not apply, if the buyer is liable to deduct TDS under any other provision of this Act on the goods purchased from the seller and has deducted such amount. Representations have been received that it becomes difficult for the seller to check whether the buyers have ensured the compliance of TDS deduction under 194Q of the Act.
5. This results in both TDS and TCS being made applicable on the same Transaction.

6. Therefore, to facilitate ease of doing business and reduce compliance burden on the taxpayers, it is proposed that provisions of sub-section (1H) of section 206C of the Act will not be applicable from the 1st day of April, 2025.

6. These amendments will take effect from the 1st day of April 2025.

This was a doubling “problem”… and leading to problems for both sellers and buyers… hence this has been removed from the law w.e.f. 1-4-2025

Action required in Finsys ERP : MUST Do

1. Cannot remove since old year compliance continue for audit etc
2. so, new year, Change the Flag “TCS” to “N” — in Party Master
3. and TCS percentage should be set as “0” — in Party Master

Source 1 : https://taxguru.in/income-tax/tcs-sale-goods-removed-april-1-2025-faqs.html

Source 2 : https://www.taxscan.in/major-tcs-changes-from-april-1-2025-removed-on-sales-foreign-education-more/498961/

Source 3 : https://cleartax.in/s/tcs-section-2061h-finance-act-2020-e-invoicing-gst

Source 4 : What was the situation of both TDS and TCS,  till 31-3-2025 ?  :  See link : https://mlgassociates.in/interplay-of-tds-194q-and-tcs-2061h-100-clarity

What to do, if already charged in invoices in April 2025 ?

Answer : Talk to your Friendly CA / Tax Consultant, Most likely answer is that you must issue the customer a Credit Note in 32 series.

Answer 2  : Do not deposit this TDS, do not upload in the TDS return of April to June 2025, the customer may face problems in getting this credit ( Depends on if the Govt software or the Govt officer is lenient or not )

Finsys at your service

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Contact us page : click here

Support Email address : Support@finsys.in

Keywords : TCS on Sales of Goods withdrawn from April 2025 Finsys, TDS-TCS interplay, TDS 194Q is supreme now. and TCS 206C, for sale of goods has been withdrawn

Detailed Web Finsys Corrugation Production Module ,

Explanation on good features :

around 1 Hour discussion on best features

Following are the major sections for board making unit which comes from proper configuration in the section master and helps in generating production report:

1.Board Making

2.Print/Slot/Die cut & glue- can be done in combined machine

3.Gluing or Stitching-may have separate machine for this

4.Manual Die Punching-Some opt for manual die punching for plates or dividers

5.Sorting & Packing- sperate stage because bundling and tagging is also done in this stage

6.WIP-FG (PDI)-Can go in FG but majorly put in WIP FG as the material is almost ready but not perfectly ready

7.Q.A.-when you confused on the decision of re-work you can put that material on hold in quality stage rather than in PDI

8.Rejection- Scrap can be created later on with this rejection systematically.

9.Utility & Others M/C-This is used at the time issuing material

Listen the Detailed YouTube video below for more detailed explanation made by the Co-Founder of Finsys Mr. Sangeet Gupta  and you can stay in touch just by following and subscribing.

Also Read : How can you make your vendor work automatically ?

Invoice Reach Record in Finsys ERP

Did your shipment reach the customer ? When ?

Are you tracking your shipments regularly ?

Are your shipments reaching in time to your customer ?

Are you updating your shipment record in your ERP ?

If not are you aware of the risk you may bear ?

Want to reduce risk of losing goods in transit ?

If you wanna avoid that risk and want to manage things peacefully  at work you have to try this Invoice Reach Record Report.

Learn more about Goods Reach Record(Click)

Finsys at your service.

Listen the Short YouTube video below made by the Co-Founder of Finsys Mr. Sangeet Gupta  and you can stay in touch just by following and subscribing.

Aurangabad, Maharashtra

Goods Reach Record Invoice Reach Record in Finsys ERP

Real time Recording of Quality Control in ERP Software

Ideal method of Quality Control

If your team members are entering quality control themselves ?

Someone else is entering Q.C on their behalf ?

If you are doing quality control template wise ?

You are choosing ‘yes or no’ arbitrarily in checklist ?

What is the ideal situation for doing Q.C ?

Your team members should enter Q.C and handover to you peacefully like lord buddha. So that you can know what quality type is your customer demanding for and are you meeting those quality parameters or not ? if not Q.C team should take the actions accordingly.

Try to do this at the time of inward, outward and IP Q.C.

Finsys ERP at your service.

Listen the Short YouTube video below made by the Co-Founder of Finsys Mr. Sangeet Gupta  and you can stay in touch just by following and subscribing.

Aurangabad Airport, Maharashtra.

Real time Quality Control recording in the ERP makes the data accurate. And customer promise kept better. Watch this short for Ideas.

Also read : Item Master Cautions in Finsys ERP

PO Tolerance Limit ? in Finsys ERP

Finsys has a feature named P.O Tolerance Limit.

So that you can’t purchase in excess. You can set the limits percentage like 5%, 10% & 0% beyond these tolerance limits your vendor will not send excess material.

If your customer has given you the order for 10,000 Pcs they will not take  12,000 or 20,000 Pcs likewise you can’t order from your vendor in excess as that will increase your stock.

Give this feature a shot.

Listen the Short YouTube video below made by the Co-Founder of Finsys Mr. Sangeet Gupta  and you can stay in touch just by following and subscribing.

Aurangabad Airport, Maharashtra.

Also Read : How can you make your vendor work automatically ?