Wrong payment of TCS on sale of goods how to get refund the same
This query is : Resolved
24 June 2025
I have 2 company, Payment of TCS on sale of good of one company but wrongly I paid TCS from another company. Then how can I get the refund amount.
Please suggest on this matter.
Please suggest on this matter.
12 August 2025
Scenario:
You have 2 companies (2 different TANs).
TCS on sale of goods of Company A was paid using Company B’s TAN by mistake.
Steps to Correct and Claim Refund:
1. Check TCS credit on TRACES portal
The TCS amount will be credited to Company B’s TAN account (wrong company).
Company A’s TAN will not show this TCS credit.
2. File Correction Statement (TCS-02) from Company B (wrong payer)
Company B should file a TCS Correction Statement to cancel the wrongly reported TCS amount against Company A’s buyer.
This will reduce Company B’s TCS liability and remove TCS credit from Company B’s account.
3. Company A to file TCS Return with correct details
Company A should file the correct TCS return (TCS-01) reflecting the correct TCS amount collected and deposited under Company A’s TAN.
4. Claim Refund by Company B (if excess TCS paid)
Since Company B paid TCS that does not belong to its sales, it can file a refund claim for the excess amount paid while filing its TCS return or through a refund application (Form 27Q or as applicable).
5. Adjustments in Income Tax Return
Company B should claim the refund in its Income Tax Return if the refund is not processed through TCS portal.
Company A will have to claim the credit in its TCS returns once corrected.
Important Notes:
No inter-company transfer of TCS credit is allowed, so correction and refund via TCS portal and Income Tax return is the route.
Keep all communication and proof of correction for future reference.
You have 2 companies (2 different TANs).
TCS on sale of goods of Company A was paid using Company B’s TAN by mistake.
Steps to Correct and Claim Refund:
1. Check TCS credit on TRACES portal
The TCS amount will be credited to Company B’s TAN account (wrong company).
Company A’s TAN will not show this TCS credit.
2. File Correction Statement (TCS-02) from Company B (wrong payer)
Company B should file a TCS Correction Statement to cancel the wrongly reported TCS amount against Company A’s buyer.
This will reduce Company B’s TCS liability and remove TCS credit from Company B’s account.
3. Company A to file TCS Return with correct details
Company A should file the correct TCS return (TCS-01) reflecting the correct TCS amount collected and deposited under Company A’s TAN.
4. Claim Refund by Company B (if excess TCS paid)
Since Company B paid TCS that does not belong to its sales, it can file a refund claim for the excess amount paid while filing its TCS return or through a refund application (Form 27Q or as applicable).
5. Adjustments in Income Tax Return
Company B should claim the refund in its Income Tax Return if the refund is not processed through TCS portal.
Company A will have to claim the credit in its TCS returns once corrected.
Important Notes:
No inter-company transfer of TCS credit is allowed, so correction and refund via TCS portal and Income Tax return is the route.
Keep all communication and proof of correction for future reference.
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