Tax Collected at Source in India

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Tax Collected at Source in India
Tax Collected at Source in India

TCS or Tax Collected at Source is the income tax collected in India, that is payable by the seller who collects in turn from the buyer and it is provided under section 206C of Income Tax Act, 1961 at the sale of some goods which are specified. The rate at which TCS is collected differs as per the category of goods.

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TCS Rates

Category of GoodsTax Rate
Liquor of alcoholic nature made for consumption by humans1%
Scrap1%
Minerals like lignite, coal and iron ore1%
Bullion that exceeds over Rs. 2 lakhs/ Jewellery that exceeds over Rs. 5 lakhs.1%
Purchase of Motor vehicle, that is worth more than Rs. 10 Lakhs1%
Parking lot, Toll Plaza and Mining and Quarrying2%
Timber wood under a forest leased2.5%
Timber wood by any other mode than forest leased2.5%
Forest produces other than Tendu leaves and timber2.5%
Tendu Leaves5%

 

*Note: The interest for the late payment of Tax Collected at Source in India to the Government is 1%, for every delayed month.

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Different Sellers that come under TCS

  • Central Government
  • State Government
  • Local Authorities
  • Statutory Corporation or Authorities
  • Companies
  • Partnership Firms
  • Co-operative Society
  • As per Section 44AB if any Individual or Hindu Undivided Family (HUF), who has total sales or gross receipts that exceed the specified monetary restricts, as per the notifications of last year.

Different Buyers that come under TCS

  • Central Government
  • State Government
  • Embassy of High Commission
  • Public Sector Entities or Companies
  • Consulate and other Trade Representation of a Foreign Nation
  • Clubs such as sports clubs as well as social clubs

Goods and Transactions that come under TCS

Here is a list of goods and transactions that are considered under TCS: –

  • Liquor that has some amount of alcohol content, which is consumed by the human beings, this includes Indian made Foreign Liquor as well
  • Timber wood obtained from a leased forest
  • Tendu Leaves
  • Timber from any source, other than leased forest
  • Produce of forest other than Tendu leaves and timber
  • Scrap
  • Minerals that include lignite or coal or iron ore
  • Toll Plaza, Parking lot ticket, Quarrying and Mining
  • Bullion as well as jewellery that is worth more than Rs. 2lakhs.

TCS Return Filing

  • The seller of the goods or services deposits the Tax Collected at Source in India amount in Challan 281 within 7 days from the last day of the month in which the tax was collected.
  • Anyone who collects tax is required to submit TCS return in Form 27EQ for the tax collected by him/her in a particular quarter of the year. The interest on delay in payment of TCS to the government should be paid before filing of the return.
  • While filing TCS return in 27EQ, the tax collector is required to provide TCS certificate to the buyer of the goods and services.
  • Form 27D is the certificate, that is issued against the filing of Tax Collected at Source in India return.

The due dates to file TCS return for the Financial Year 2018-19

QuarterPeriodDue date of return filing
1st Quarter1st April to 30th June15th July 2018
2nd Quarter1st July to 30th September15th Oct 2018
3rd Quarter1st October to 31st December15th Oct 2018
4th Quarter1st January to 31st March15th May 2019

Filing Income Tax Return

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