Tcs % without pan
This query is : Resolved
15 November 2011
What is rate of TCS if party doesn't have PAN whether it is prescribed in act or @ 20%, if it 20% than please quote section/circular/notification.
16 November 2011
if customer has not pan than rate of TCS is 20% & code will be 206ce for scrap.
26 November 2011
i think higher deduction of tax is only for TDS & not for TCS. Reason, Sec 206AA cover only payment inder Chapter 17B of act while TCS is falls under Chapter 17BB. So any tax collection through TCS provision does not make sense of higher rate determine for PAN deficiency.What are ur views guys
13 December 2011
Is any expert guide me for my findings in my above comments
26 July 2025
Great question! Here's the detailed explanation on **TCS rate when PAN is not furnished**:
---
### TCS Rate Without PAN:
* **Section 206C** governs Tax Collected at Source (TCS).
* The **higher rate of 20% applies to TDS (Tax Deducted at Source) under Section 206AA** if PAN is not provided.
* However, **Section 206AA specifically applies only to TDS (Chapter XVII-B of the Income Tax Act)** and **does NOT apply to TCS (which falls under Chapter XVII-BB)**.
**Therefore:**
* **There is NO provision for increased TCS rate for non-furnishing of PAN**.
* The **normal TCS rate as specified for the particular goods or transactions applies regardless of PAN availability**.
---
### References:
* Section 206AA (which prescribes higher TDS rate for non-PAN) applies only to TDS, **not to TCS**.
* No circular or notification specifies higher TCS rate for PAN non-furnishing.
* So, the **TCS rate remains as per the applicable schedule (usually 1%, 2%, 5%, etc.) even if PAN is not provided by the buyer**.
---
### Summary:
| Scenario | TDS Rate | TCS Rate |
| ---------------- | --------------- | -------------------- |
| PAN provided | Normal rate | Normal rate |
| PAN not provided | Higher rate 20% | Normal TCS rate only |
---
If someone charges 20% TCS due to non-PAN, it's **not legally valid** as per the current Income Tax provisions.
---
**Do you want me to help with official circulars or further case laws?**
---
### TCS Rate Without PAN:
* **Section 206C** governs Tax Collected at Source (TCS).
* The **higher rate of 20% applies to TDS (Tax Deducted at Source) under Section 206AA** if PAN is not provided.
* However, **Section 206AA specifically applies only to TDS (Chapter XVII-B of the Income Tax Act)** and **does NOT apply to TCS (which falls under Chapter XVII-BB)**.
**Therefore:**
* **There is NO provision for increased TCS rate for non-furnishing of PAN**.
* The **normal TCS rate as specified for the particular goods or transactions applies regardless of PAN availability**.
---
### References:
* Section 206AA (which prescribes higher TDS rate for non-PAN) applies only to TDS, **not to TCS**.
* No circular or notification specifies higher TCS rate for PAN non-furnishing.
* So, the **TCS rate remains as per the applicable schedule (usually 1%, 2%, 5%, etc.) even if PAN is not provided by the buyer**.
---
### Summary:
| Scenario | TDS Rate | TCS Rate |
| ---------------- | --------------- | -------------------- |
| PAN provided | Normal rate | Normal rate |
| PAN not provided | Higher rate 20% | Normal TCS rate only |
---
If someone charges 20% TCS due to non-PAN, it's **not legally valid** as per the current Income Tax provisions.
---
**Do you want me to help with official circulars or further case laws?**
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