SAP Knowledge Base Article - Public

2975267 - You Expect a TCS Relevant Tax Code to Be Determined Automatically in a Sales Document


In India as per recent law change, From 1st Oct 2020 onwards, TCS (tax collected at source) will be applicable for all the goods after the total transaction with a supplier exceeds 50Lakh (5 000 000 INR). The tax codes relevant for TCS are available in the system for example Tax Code 593 - Domestic Sale Interstate - IGST + TCS ( Calc. incl. GST ) and Tax Code 594 - Domestic Sale Intrastate - CGST + SGST + TCS ( Calc. incl. GST ).

However, the system does not automatically determine the respective TCS relevant Tax Code when the total transaction with a supplier exceeds 50Lakh.


SAP Business ByDesign


The TCS relevant Tax Code will not be automatically determined by the tax engine in a transactional document such as a sales order since the accumulation capabilities in the Tax Engine are currently not available in SAP Business ByDesign.


You can manually select the TCS relevant Tax Code in your Sales Document.

You can also manually check the auto determine TCS relevant tax codes for an account when you notice that the account has exceeded 50Lakh.

  1. Go to the Account Management work center. 
  2. Select the Accounts view. 
  3. Open the respective Account. 
  4. Navigate to the Financial Data tab and the Tax Data sub tab. 
  5. You can see the check box TCS relevant. 

If you manually check the TCS Relevant check box in the account master data,  on all subsequent invoices with the same account the TCS relevant tax code is auto determined by default once you observe that 50 lakh warning is being displayed.

See Also

Help Center Document: Tax Code Determination for Tax Collected At Source (TCS) – India

KBA 2977201 - TCS Field Missing in the Customer Invoice Form Template

KBA 2977615 - GST India TCS Scenario: How to Post the Documents with TCS Tax Codes for Sales Side Documents 


Sales Order; Service Order; Service Quote; Sales Quote; Quote; Invoice; TCS; Tax Code; Tax Engine; Tax Determination; Automatically; Automatic Tax Determination; Default , KBA , AP-TTE-GLO , Cross-Country Extensions , Problem


SAP Business ByDesign 2008