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This article focuses on the TCS Rates for FY 2021-22 and it's comparison with FY 2020-21.

What is TCS?

Tax collected at source (TCS) is the tax payable by a seller which he collects from the buyer at the time of sale. Section 206C of the Income-tax act governs the goods on which the seller has to collect tax from the purchasers.

Which sellers are required to Collect Tax at Source?

The following sellers are required to collect TCS:

  1. Central Government
  2. State Government
  3. Local Authority
  4. Statutory Corporation or Authority
  5. Company registered under the Companies Act
  6. Partnership firms
  7. Co-operative Society
  8. Any person or HUF who is subjected to an audit of accounts under the Income tax act for a particular financial year.
TCS Rate chart: What are the applicable TCS rates for FY 2021-22 (AY 2022-23)

Which buyers are required to Pay Tax at Source?

The following buyers are required to pay TCS:

  1. Public sector companies
  2. Central Government
  3. State Government
  4. Embassy of High Commission
  5. Consulate and other Trade Representation of a Foreign Nation
  6. Clubs such as sports clubs and social clubs

Amendments in TCS as per budget for FY 2021-22

  • Higher TCS Rates are applicable in case of non filing of ITR (as per section 206CCA)
  • No TCS u/s. 206C(1H) in case a transaction is covered u/s 194Q

       Both provisions mentioned above are applicable from 01/07/2021.

 

TCS Rate Chart for FY 2021-22 (AY 2022-23)

A. CATEGORY - 1: SECTION 206C (1)

TCS Deposit Challan Code/Description

TCS Rate

6CA - Alcoholic Liquor for Human Consumption

1%

6CB - Timber obtained under a forest lease

2.5%

6CC - Timber obtained by any mode other than under a forest lease

2.5%

6CD - Any other forest produce not being timber or tendu leaves

2.5%

6CE - Scrap

1%

6CI - Tendu Leaves

5%

6CJ - Minerals, being coal or lignite or iron ore

1%

6CK - Bullion & Jewellery

B. CATEGORY - 2: SECTION 206C (1C)

TCS Deposit Challan Code/Description

TCS Rate

6CF - Parking Lot

2%

6CG - Toll Plaza

2%

6CH - Mining & Quarrying

2%

C. CATEGORY - 3: SECTION 206C (1F)

TCS Deposit Challan Code/Description

TCS Rate

6CL - Motor Vehicle (any mode of payment)

1%

D. CATEGORY - 4: SECTION 206C (1E)

TCS Deposit Challan Code/Description

TCS Rate

6CM - Cash Sale of any goods (other than bullion/jewellery)

6CN - Providing any services (other than Ch-XVII-B)

E. CATEGORY - 5: SECTION 206C (1G)

TCS Deposit Challan Code/Description

TCS Rate

6CO - Overseas Tour Program Package

5%

TCS in case of Non-Furnishing of PAN/Aadhaar: 10%

6CP - Remittance under LRS for  education loan taken from financial institution mentioned under section 80E

0.50%

6CQ - Remittance under LRS (for purpose other than for purchase of overseas tour package or for education loan taken from financial institution mentioned under section 80E)

5%

TCS in case of Non-Furnishing of PAN/Aadhaar: 10%

F. CATEGORY - 6: SECTION 206C (1H)

TCS Deposit Challan Code/Description

TCS Rate

6CR - Sale of Goods

0.10%

TCS in case of Non-Furnishing of PAN/Aadhaar:1%

G. CATEGORY - 7: SECTION 206CCA

TCS Deposit Challan Code/Description

TCS Rate

Higher Rate of TCS for Non Filer of ITR

Note: Proposed section 206CCA of the Act would apply on any sum or amount received by a person (herein referred to as collectee) from a specified person. The proposed TCS rate in this section is higher of the following rates –

  • Twice the rate specified in the relevant provision of the Act; or
  • The rate of 5%.

Who is the person liable to furnish TCS Statements?

Every person responsible for the collection of tax at source shall be required to furnish quarterly statements in respect thereof.

 

What is the Form for filing TCS statements?

Quarterly TCS statements shall be furnished in Form No. 27EQ

What is the due date of filing of TCS Statements?

Quarter Ending of the Financial Year

Due Dates

30th June

15th July of the financial year

30th September

15th October of the financial year

31st December

15th January of the financial year

31st March

15th May of the financial year immediately following the financial year in which collection is made.

In which mode can users furnish TCS Statement Electronically?

The quarterly TCS statement shall be furnished electronically in any of the following modes:

  1. Furnishing the statement electronically under digital signature; or
  2. Furnishing the statement electronically along with the verification of the statement in Form 27A or verified through an electronic process.

Click here to download: TCS Rate Chart for FY 2021-22 (AY 2022-23)


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Category Income Tax, Other Articles by - Pushkar 



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