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Income tax

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Bharathi.G.S

Bharathi.G.S (Querist)
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11 November 2011 Thanks for replying sir I want to know the difference between TDS and TCS

CA sheekhr

CA sheekhr (Expert)
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12 November 2011 i will tel u in short tcs means when a seller sell good to buyer and at the time of collecting money or at the time of debiting amt payable by buyer,seller collects tcs from the buyer in regard to certain goods like alcohol scrap tendu leaves which vary from 1% to 5%...tds is opposite of tcs but in tds services r given....

Kishanlal Paliwal

Kishanlal Paliwal (Expert)
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12 November 2011 TDS: Under this arrangement Income Tax is deducted from the payment made to Vendor. Since the payer is supposed to pay the sum after deduction of tax that is why it is called as "Tax dedcted at source".

TCS: Under this arrangement Income Tax is charged in the bill and collected from Customer. Since the tax is charged in the bill and collected from Customer, it is called as "Tax collected at source".

Hope I could simplify it.

Regards
K.L.Paliwal

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