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Difference between TDS & TCS ?


I want to know the difference between these two terms explain me clearly if anybody can

 
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Sr Executive Finance


Tds means tax deducted at source means any tax whch has been deducted while paying someone or while receiving income from someone refer sec. 194 for details while TCS is tax collected at source for example Mr. A has deducted TDS of Mr. Bfor paying him Interest on loan and he has collected this money and has not deposited till now then it is TCS for mr. A.......and as and wen mr. A will deposit this amont to any bank...or directly to the credit of central govt. then this will become TCS for that bank.......


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Chartered Accountant



Tax deduction at Source (TDS)

Persons responsible for making payment of Income covered by the scheme of tax deduction is are required to deduct tax at source at the prescribed rates. Tax so deducted should be deposited within the prescribed time. Returns on TDS should be submitted within the specified time.

The income tax is deducted at source on

  • Salaries
  • Interest on Securities
  • Rent payments
  • Payments to Contractors and sub contractors
  • Payment of Commission or brokerage
  • Payment of fees for Professional/Technical Services
  • Payment of any income to Non Resident

Tax Collection at Source (TCS)

Tax Collection at Source arises on the part of the seller. The following goods when sold must be subjected to TCS and the taxes collected thereon must be remitted into department's accounts as done in the case of TDS

  • Alcoholic liquor for human consumption and Tendu leaves
  • Timber obtained under a Forest Lease
  • Timber obtained by any mode other than under a Forest Lease
  • Any other Forest produce not being Timber or Tendu Leaves
  • Scrap (waste and scrap from the manufacture or mechanical working of materials which is definitely not usable as such because of breakage, cutting up, wear and other reasons
     

 


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thnks 4 d info
 

 
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The Possibilities are Infinite...

Thanks for info

 
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(Guest)

What is Diffrence between TDS &TCS

 
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(Guest)

What is TCS in which expenses or in which department it is applicable, and who will issue the TCS certificate and how the deductee is benificiated.

Thanks & Regards.

Sreenivasa Sarma V V

 
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Originally posted by :Guest
" What is TCS in which expenses or in which department it is applicable, and who will issue the TCS certificate and how the deductee is benificiated.
Thanks & Regards.
Sreenivasa Sarma V V
"

TDS means Tax deducted at source -----------i.e when you receive income you receive the net amt i.e. after decuction of tax this is known as tax deductd at soruce
 

and similary when you make payment to someone you cut tax and this is kunown as TCS tax collected at source

 


Total thanks : 2 times

 
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hello vaibhav ur diff is superb

 
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can anyone tell me about TCS in brief?? Please I dont have any matter to study frm on this topic.....so plz do help me......

 
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