Difference

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 August 2011 hello sir,
I am R.Manikandan. I want to know what is TDS and TCS ? and What is the different between the two term? please give me some useful information about that.I am awaiting for your reply.

CA Aditya Goel

CA Aditya Goel (Expert)
Follow

08 August 2011 Hi Mr. Manikandan. I will try to explain you the diff bw two in very brief.

TDS is Tax deducted at source. here the person deduct some part of income as tax of the other party while making the payment to the latter one. For eg. while making payment to CA TDS is deducted, similary while making payment of a Contractor. There are some limits and rates for deducting TDS.

TCS is tax collected at source. its the amount collected by the seller of certain products (Timber, Scrap etc) from the buyer in addition to the sales receipts. here also TCS is collected on the basis of some limits and rates defined.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
Follow

08 August 2011 TDS- Tax Deducted at source Generally Deducted by the person who is making payment against the expenses ( for services received )

TCS- Tax collected at source When the sellr of the follwing goods as specfied U/s.206(1)

1.Alcoholic Liquor for Human consumption
2.Tendu Leaves
3.Timber Obtained under a forest lease
4.scarp
5.Parkinglot,toll plaza,mining and quarrying

while selling the seller collecting from the buyer of the particular product

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok