Pls help ...... regarding tds & tcs !!!!!!

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Minaz

Minaz (Querist)
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27 March 2012 Can any body help me what is the differences between TDS & TCS. and can assessee take the credit of TCS.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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27 March 2012 Yes Assessee can take credit of the TCS.

Difference between TDS and TCS

TDS and TCS are two exactly opposite scenarios.

The former is the deduction from the income of the recipient while the later is the amount accumulated by the company or others in the form of tax. So in other words TDS is a form of expense while TCS is a form of income.

In India the tax is deducted at source (TDS) on the following grounds:

* Salaries
* Rent received from properties
* Payment received on Commission or brokerage
* Interest received on bonds and securities.
* Interest received from fixed deposit.
* Other sources of income are also included in it as in payment received from other professional services apart from salary.

On the other hand it is the responsibility of the seller or the company to deposit the Tax Collected at Source.

Under Section 206C, every item that a seller sells is liable for some percentage of tax. For example even if a seller sells a scrap it is entitled for a tax of 1% on the selling price.

Following are the goods when sold in the market must be subjected to TCS and these collected taxes must be deposited in the Income Tax departments at the end of the financial year:

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

For more details check out the article from below link--

https://www.caclubindia.com/articles/all-you-want-to-know-about-tds-7882.asp

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Minaz

Minaz (Querist)
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27 March 2012 Thanx a lot sir...