Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

TCS

Save Share

Join Us Follow Us Add as Source

This query is : Resolved

Report Follow Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

16 February 2011 What is the difference between TDS & TCS?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

16 February 2011 1.TCS, as the name implies, means collection of tax at source by the seller or collector, from the buyer of the goods.
2.As prescribed under Income Tax Act 1961, it is mandatory for the buyer to pay a predetermined value of TCS to the seller, while purchasing a particular commodity.

3. TCS is generally set for business or trade in alcoholic liquor, forest produce, scarp, etc. Various lease, license and contracts related to areas like parking lot, mines and toll plaza also falls under the umbrella of TCS.

4. In case of TDS when amount of any income is paid or credited to the account of payee, tax is deducted at source at the prescribed rates and is being deposited with the Govt. by the deductor.

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