StoreHippo lets you apply TCS (Tax collected at source) tax which is the tax payable by a seller. The seller collects the TCS from the buyer at the time of sale. It means when an order is processed, the seller has to pay 1% of the order value as tax.
Calculation of the TCS tax is explained with the help of an example as follows.
Order Value: 5000/-
Shipping Value: 70/-
Total Order Value: 5070/-
GST on the order value at the rate of 18% for Rs. 5000/- is:762.72
GST on Shipping of Rs. 70 at
Total Order Amount (A): 5070/-
Total GST Amount (B): 773.4
Net Amount (C)=( A-B): 4297.6
TCS of 1% Should get deducted on "C" of Rs. 4297.6
It gets deducted from the seller Payments in the seller commission Invoice.
The TCS tax is not enabled by default in your store. You can enable the TCS tax in the Miscellaneous settings. Go to Settings > Miscellaneous section in StoreHippo Admin Panel and select the "Apply TCS" checkbox to apply the tax in your store.
Whenever a seller transaction occurs in your store, the entry is added in the Seller Ledger section. Hence, when the TCS tax is deducted, the debit entry of 1% of the total amount of the order value is added in seller ledger.