1. To enable the TCS process, go to Inventory >> Inventory Settings >> Features tab and click on Enable TCS. After enabling the option, save and exit.
2. To create the required Ledgers
   • Go to Tools >> Show/Hide, select Default Ledger and Save
   • Next, go to Master >> Default Ledger >> TCS tab. Here, select required section statutory ledgers or click on Select All. Click on Create and the required ledgers will be created
3. To enable TCS in Invoice, go to Inventory >> Transaction Formats and select the required format. Enable Post Billing for TCS and save the format setting.
4. To make TCS applicable for an Item, go to Master >> Item, select/create an item. Click on the Tax Details tab and enable TCS. Select the applicable section from the list and save it.
5. Lastly, to enable TCS for a Party/Customer, go to Master >> Ledger, select/create a customer ledger. Click on the Other Details tab and enable Apply TCS. Then, enable TCS From First Bill if the TCS has to be collected from Re. 1 of Invoice

Steps to create New TCS section with recent amendments

1. Go to Tools >> Show/Hide, select Tax Master and Save.
2. Next, go to Master >> Tax Master, select Tax Type as Tax Collected at Source. Click on the 3 doted (…) button next to Main Class to create the main class.
3. In this window, enter the New TCS section name as the Main class, Tax type, Tax Rate applicable, Section Code, and Threshold limit Per Bill and Per Annum. After entering all the details, save, and exit.
4. Now, select the created Main Class, and enter the Effective From and To date for the section.
5. Next, select the Tax Ledger from the dropdown. The tax ledger can be edited or created by pressing F9. The tax ledger has to be created under the Statutory Dues group. Make sure to enable Tax Type and select Tax Collected at Source for Tax Type in the Tax Details tab. After editing/creating, save the ledger and exit.
6. Now, save the Tax Master changes and exit.