TCS
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
28 May 2010
please some one tell me what is all about TCS, no one answer me yet, or the answer came I not understand his language,
also tell what is the maid difference between TDS & TCS, is it same thing pl. answer me
also tell what is the maid difference between TDS & TCS, is it same thing pl. answer me
28 May 2010
Hi,
TDS stands for tax deducted at source.
TCS stands for tax collected at source.
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.
TDS stands for tax deducted at source.
TCS stands for tax collected at source.
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.
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28 May 2010
We generally heard the concept TDS/TCS. But in use we generally are in touch with Tax Deduction at Source (TDS). Tax Collection at Source is a tax which is collected on sale means the seller collect tax from the buyer of specified goods in section (206C(1) in the concept TCS. The whole concept of TDS/TCS is from the income tax act is to widen the income tax scope and to include more and more persons into tax grip.
Concept of TCS: - in this concept the seller of specified goods collect tax from the buyer under the section 206C (1). This is also called TCS and full form is Tax collected at source.
Definition of buyer: - Buyer is a person who buys the goods for sale. The mode of buying may be direct purchase, tender or any auction to the specified goods. But these are not covered as buyers in Tax Collected at source (TCS) Act.
- Central/State government.
- Public company.
- Embassy, High commission or representation of foreign country.
- Any club.
- Any person who buys the goods for personal consumption & not for sale.
Definition of seller: - seller of the specified goods is covered in TCS act. Seller may be
- individual or huf
- firm
- co-operative society
- company
- state or central government
- local authority
Specified goods: - Specified goods are those goods, sale or purchase of these goods attracts TCS. There are only some of goods which attract TCS and the list of these items is as follows.
1- Alcoholic liquor for human consumption.
2- Timber
3- Tendu leaves.
4- Forest produce other than timber and tendu leaves.
5- Scrap or waste.
Concept of TCS: - in this concept the seller of specified goods collect tax from the buyer under the section 206C (1). This is also called TCS and full form is Tax collected at source.
Definition of buyer: - Buyer is a person who buys the goods for sale. The mode of buying may be direct purchase, tender or any auction to the specified goods. But these are not covered as buyers in Tax Collected at source (TCS) Act.
- Central/State government.
- Public company.
- Embassy, High commission or representation of foreign country.
- Any club.
- Any person who buys the goods for personal consumption & not for sale.
Definition of seller: - seller of the specified goods is covered in TCS act. Seller may be
- individual or huf
- firm
- co-operative society
- company
- state or central government
- local authority
Specified goods: - Specified goods are those goods, sale or purchase of these goods attracts TCS. There are only some of goods which attract TCS and the list of these items is as follows.
1- Alcoholic liquor for human consumption.
2- Timber
3- Tendu leaves.
4- Forest produce other than timber and tendu leaves.
5- Scrap or waste.
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28 May 2010
BUT TAN IS NECESSARY FOR DEDUCTING TDS & TCS BOTH.
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