Deduction that has to happen on the face value of the goods or services or transactional value
TCS is a charge payable by a seller which the seller collects from the buyer at the time of sale
Example – If we do a transactional value of INR 1,00,000 and add GST to it. The deduction has to happen on the base service /goods charge and not on any indirect tax that has been applied to it
Example – If we do a transactional value of INR 1,00,000 and add GST to it. The TCS has to be charged on the final value of the service /goods . It works in an indirect tax format.
It is applicable on the basic sales value and not the functional value
It is applicable on the invoice value