Answer Posted / subhash jaiswal
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 ? | 68 Yes | 8 No |
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