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Tcs

Nidhin Chinnan (4 Points)

29 September 2016

THE DETAILED EXPLANATION OF TCS

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2 Replies

Kajal Jain (Freelancer-Chartered Accountant) (551 Points)
Replied 29 September 2016

TDS is tax deducted at source....

similarly TCS is tax collected at source...
you need to deduct tax at certain percentage while buying some commodities and then pay it to the govt

CA Tanvi Sheth (Consultant) (232 Points)
Replied 01 October 2016

Hello,

TDS is paid by the person paying the amount, ie the payer will pay the seller net of TDS. For Eg bill amt Rs. 10000, TDS @ 1% then net amount that will be paid is Rs. 9900.

Now TCS is tax collected on source, this has been applied on only a few products like bullion, jewellery, Scrap, etc. It is taxed by the seller and the buyer pays the tax. it is covered u/s 206C.

For eg: A(wholesale Jewellery Dealer) sells B( retail Dealer), jewellery of Rs. 1000000, then on basis of payment or credit whichever is earlier, A will collect TCS @ 1% from Mr. B i.e 10000, so in this case buyer will have to pay in total Rs.1010000.

Thanks,

Tanvi