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Categories >> Accounting >> Taxation


 Audit interview questions  Audit Interview Questions (428)
 CompanyAffairs CS interview questions  CompanyAffairs CS Interview Questions (159)
 Taxation interview questions  Taxation Interview Questions (1915)
 Accounting General interview questions  Accounting General Interview Questions (2841)
 Accounting AllOther interview questions  Accounting AllOther Interview Questions (4376)
What is TCS?
Are the rates of TDS and TCS same??
 Question Submitted By :: Taxation
I also faced this Question!!     Answer Posted By  
# 1
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
their rates.

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
Scrap 1
Is This Answer Correct ?    63 Yes 7 No
Subhash Jaiswal
# 2
basic difference between tds and tcs is

tds is deducted on payment and

tcs is collected on receipts.

i think all about tds so its easy to explain you tcs.

tcs is applicable u/s 206 c of act and applicable on
following items

(i)Alcoholic Liquor for human consumption

one per cent

(ii)Tendu leaves

Five per cent

(iii)Timber obtained under a forest lease

two and one-half per cent

(iv)Timber obtained by any mode other than under a forest

Two and one-half per cent

(v)Any other forest produce not being timber or tendu leaves

Two and one-half per cent


One per cent:]
Is This Answer Correct ?    48 Yes 1 No
# 3
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.
Is This Answer Correct ?    57 Yes 18 No
# 4
tcs is collected by the seller of scrap goods as per the
tax percentage
Is This Answer Correct ?    54 Yes 27 No
# 5
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.
Is This Answer Correct ?    31 Yes 6 No
# 6
Surcharge & cess is removed on TCS w.e.f. 1.10.2009 also
as TDS/ TCS rates are efective from 1.10.2009
Is This Answer Correct ?    22 Yes 2 No
# 7
Tax collected at source. this is tax mainly levied
on "scrap sales" the present rate is 1% + surcharge & cess.
Is This Answer Correct ?    22 Yes 8 No
Dinesh Aicwa
# 8
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%
Is This Answer Correct ?    12 Yes 2 No
# 9
TCS=Tax Collected at Source

Both Rate Depand on neture of Goods
Is This Answer Correct ?    11 Yes 2 No
Jugal Das
# 10
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.
Is This Answer Correct ?    3 Yes 0 No

Other Taxation Interview Questions
  Question Asked @ Answers
1. what is the last date for payment of tds for the month of March? 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?   2
dear Sir, we have purchased Small & Big size blade for manufacturing extrusion machine rubber cutting . This input vat claim it or not ? Pls informe me Regards   1
What is TDS?   2
How to get refund of Service Tax and it comes under which Department ?   1
If the purchaser did not submit form "c" while purchase from outside state, and he charged for 12.5 % vat, then can he claim input credit for Rs. 12.5 % ?   4
what is tcs   2
Penalty if TDS Returns not submitted on time?   1
When VAT 14.5% is applicable and when Work contract tax 4% is applicable? Is both are same?   2
How to calculate TDS interest for the financial year 2010-11 Cadila 1
What is due date of Service tax deposit in case of Individual,properitor, and company   1
Who is liable for TDS ON CONTRACTORS 1% categories ?   1
what is FBT?   6
For more Taxation Interview Questions Click Here 

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