Tcs
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
12 November 2011
Respected sir/mam may i know what is difference between TDS and TCS
14 November 2011
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:
* Alcohol and Tendu leaves
* Timber from the leased forest
* Any other product obtained from the leased forest apart from the wood.
However apart from the above mentioned articles the TDS collected from the employees are also termed as the tax collected as source (TCS) which needs to be deposited to the Income Tax department at the end of each and every financial year.
It is important to note that while working on tally9 at its advanced level we need to categorize the TDS and TCS distinctly as both of these items needs to be reflected in the company accounts as per the rules of Income Tax Act 1961.
more info:-
https://www.caclubindia.com/experts/difference-between-tds-tcs--99901.asp
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:
* Alcohol and Tendu leaves
* Timber from the leased forest
* Any other product obtained from the leased forest apart from the wood.
However apart from the above mentioned articles the TDS collected from the employees are also termed as the tax collected as source (TCS) which needs to be deposited to the Income Tax department at the end of each and every financial year.
It is important to note that while working on tally9 at its advanced level we need to categorize the TDS and TCS distinctly as both of these items needs to be reflected in the company accounts as per the rules of Income Tax Act 1961.
more info:-
https://www.caclubindia.com/experts/difference-between-tds-tcs--99901.asp
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Reporting Income under Section 44ADA
- Off Market debit and credit transaction
- Itr 1 processing
- Showing Gift from relative in ITR for this year
- Form 10E u/s 89(1). Need clarification because experts opinions differ !!!!
- ITR 1: Details for showing Exempt Income
- Share accounting-->fifo - capital gain - period as per fifo?
- ITR 2 Short Term gain & Long term gain
- ITR returnFY25-26
- Short Term Capital gain on shares bought and sold after 2018 onwards
- TDS 194R on GST effected
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
