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IndiaTax & ComplianceUpdated: Sep 13, 2026
Direct Answer
When a supplier collects 0.1% TCS under 206C(1H), do not book it as an expense. Book the TCS amount to a "TCS Receivable (Asset)" account. It will reflect in your Form 26AS, and you can adjust it against your final income tax liability.
The Supplier Invoice
When your purchases from a single supplier cross ₹50 Lakhs, they will add 0.1% TCS to their invoice. For example, Goods ₹1,00,000 + GST ₹18,000 + TCS ₹118.
Accounting Entry
- Debit: Purchases ₹1,00,000
- Debit: Input GST ₹18,000
- Debit: TCS Receivable ₹118
- Credit: Supplier ₹1,18,118
Form 26AS Verification
At year-end, reconcile the TCS Receivable ledger balance against the TCS section of your Form 26AS. If the supplier hasn't filed their TCS return, follow up before filing your ITR.