Tds and tcs
This query is : Resolved
CA PARAS BAFNA
(Expert)
24 May 2012
Basic Difference:
In TDS D stands for Deducted and in TCS C stands for Collected. T stands for Tax and S stands for source in both the terms.
.
Generally TDS is deducted by a person who is paying income to other persons.
Example- Salary, Interest or Commission payments.
Whereas Tax is collected at source from the Purchaser by the seller of goods .
There are certain goods like Liquor, Tendu Leaves, Timber etc on which Tax is collected from the Purchaser and it is deposited with the Govt by the seller.
.
In TDS D stands for Deducted and in TCS C stands for Collected. T stands for Tax and S stands for source in both the terms.
.
Generally TDS is deducted by a person who is paying income to other persons.
Example- Salary, Interest or Commission payments.
Whereas Tax is collected at source from the Purchaser by the seller of goods .
There are certain goods like Liquor, Tendu Leaves, Timber etc on which Tax is collected from the Purchaser and it is deposited with the Govt by the seller.
.
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CA PRAVEEN SINGH
(Expert)
25 May 2012
TDS stands for Tax deducted at source and TCS stands for Tax collected at source.
TDS is deducted on payment from the amount paid or credited in books which ever is earlier. Say you are making payment of RS. 100/- towards contractual services, you deduct TDS @ 2.266% = Rs. 2.67 and pay Rs. 97.33
TCS is collected in addition to the sales prices of certain specified items. For eg. on sale of scrap TCS to be collected is 1.133% Say for 100 Rs. sale of scrap you have to collect TCS @ 1.133% = 1.13 Rs. So. you must recieve Rs. 101.13
Both the collections are to be deposited with bank into respective accounts
TDS is deducted on payment from the amount paid or credited in books which ever is earlier. Say you are making payment of RS. 100/- towards contractual services, you deduct TDS @ 2.266% = Rs. 2.67 and pay Rs. 97.33
TCS is collected in addition to the sales prices of certain specified items. For eg. on sale of scrap TCS to be collected is 1.133% Say for 100 Rs. sale of scrap you have to collect TCS @ 1.133% = 1.13 Rs. So. you must recieve Rs. 101.13
Both the collections are to be deposited with bank into respective accounts
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