Tax Collection at Source or TCS, as the name implies, means
collection of tax at source by the seller or collector,
from the buyer of the goods. As prescribed under Income Tax
Act 1961, it is mandatory on the part of the buyer to pay a
predetermined value of TCS to the seller, while purchasing
a particular commodity. TCS is generally set for business
or trade in alcoholic liquor, forest produce, scarp, etc.
Various lease, license and contracts related to areas like
parking lot, mines and toll plaza also falls under the
umbrella of TCS in India.
TCS is generally collected when amassed or when paid,
whichever is earlier. The seller or collector who collects
the tax is required to deposit it in any of the designated
branches of the certified banks. Tax Collection at Source
is implemented to curb tax evasion and also to facilitate
proper tax collection in India. The various goods which
come under the policy of TCS are listed below along with
Nature of Goods Percentage/Rate of Tax
Alcoholic liquor 1
Timber obtained under forest lease 2.5
Tiber obtained without forest lease 2.5
Tendu Leaves 5
Other forest produce, excluding Tendu leaves and Timber 2.5
TDS means Tax Deducted at Source
TCS means Tax Collected at Source
In case of certain income, tax is deducted at source by the
payer at the prescribed rates either at the point of
accrual or payment of such income. On same lines tax is
collected at source by the seller from buyer/ licensee/
lessee at the time of debiting the amount to the account of
such buyer/ licensee/ lessee or the receipt of the payment
whichever is earlier.
The tax rates of TDS and TCS will be the same according to
the Prescribed rates of INCOME TAX ACT.
TCS stands for tax collection at source. In case of profits
and gains from the business of trading in alcoholic liquor,
forest produce, scrap etc. u/s 206C(1) of the Income Tax
Act, 1961 seller is required to collect the income tax from
the buyer as per the specified rates either at the time of
receipt of such amount or at the time of debiting amount
payable by the buyer to his concerned account.
TCS is the Tax Collected at Source. The rates of TDS & TCS
are not the same. For Indian companies w.e.f 01.10.09 the
surcharge & Cess are not applicable on TCS rate which are
different for different items e.g. for Scrap 1%
TCS means tax collection at source which is liable on sales
of scrape (which is not useable).
Rate of TCS is 1% and 3% cess of the income is not greater
than 1 crore & 1% TCS 10% surcharge and 3% Cess ifincoem is
more than 1 crore.
1. what is the last date for payment of tds for the month of
2.Will the due date differs for each assessment years? if so
what is due date for payment of tds for March Month for the
Assessment year 2008-09?