Tcs
This query is : Resolved
23 June 2012
Dear sir,
Please explain me the concept of TCS and what are the differences b/w TDS and TCS.Please give me an example also for TCS.
Please explain me the concept of TCS and what are the differences b/w TDS and TCS.Please give me an example also for TCS.
CA PRAVEEN SINGH
(Expert)
23 June 2012
Hi,
TDS is actually a deduction while TCS is a collection of tax at source, meaning thereby, if X makes payment of Rs. 100 to Y and such payment is covered under the provisions of tds, then X will have to deduct tds say Rs. 10 and then will make payment of Rs. 90 to Y.
While, if X sells goods worth Rs. 100 to Y and such goods are covered under the provisions of tcs, then X will collect Rs. 10 more from Y and hence the sale will be for Rs. 110.
In both the cases Rs. 10 will be deposited to govt. account.
Hope it will clarify the provision a little clear
Regards.
ca praveen
TDS is actually a deduction while TCS is a collection of tax at source, meaning thereby, if X makes payment of Rs. 100 to Y and such payment is covered under the provisions of tds, then X will have to deduct tds say Rs. 10 and then will make payment of Rs. 90 to Y.
While, if X sells goods worth Rs. 100 to Y and such goods are covered under the provisions of tcs, then X will collect Rs. 10 more from Y and hence the sale will be for Rs. 110.
In both the cases Rs. 10 will be deposited to govt. account.
Hope it will clarify the provision a little clear
Regards.
ca praveen
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