TDS is actually a deduction while TCS is a collection of
tax at source, meaning thereby, if X makes payment of Rs.
100 to Y and such payment is covered under the provisions
of tds, then X will have to deduct tds say Rs. 10 and then
will make payment of Rs. 90 to Y.
While, if X sells goods worth Rs. 100 to Y and such goods
are covered under the provisions of tcs, then X will
collect Rs. 10 more from Y and hence the sale will be for
In both the cases Rs. 10 will be deposited to govt. account.
Hope it will clarify the provision a little clear.
Anand put Hire charges bill for Rs 185250. During the
course of work we supplied diesel worth Rs 25360,paid
driver battas of Rs 1050.Pl pass journal entry by taking
security deposit @ 5% and TDS @2.25%as deductions from bill