TCS

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

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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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.

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