TDS & TCS
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
06 January 2010
Hello frnds can anybody tell me complete difference between TDS and TCS?
CMA Ramesh Krishnan
(Expert)
06 January 2010
TDS- Tax Deducted at source Generally Deducted by the person who is making payment against the expenses ( for services received )
TCS- Tax collected at source When the sellr of the follwing goods as specfied U/s.206(1)
1.Alcoholic Liquor for Human consumption
2.Tendu Leaves
3.Timber Obtained under a forest lease
4.scarp
5.Parkinglot,toll plaza,mining and quarrying
while selling the seller collecting from the buyer of the particular product
TCS- Tax collected at source When the sellr of the follwing goods as specfied U/s.206(1)
1.Alcoholic Liquor for Human consumption
2.Tendu Leaves
3.Timber Obtained under a forest lease
4.scarp
5.Parkinglot,toll plaza,mining and quarrying
while selling the seller collecting from the buyer of the particular product
CA. Rishabh Mittal
(Expert)
06 January 2010
TDS - When you (Payer) make a payment for expenses to someone (Payee), which is going to be his/her/it's income, then you may in certain cases, be liable to deduct tax on such amount & deposit it to govt on behalf of such person (Payee). The amount so deducted is called TDS (Tax deducted at source)
TCS - Here, seller (Payee) of certain specified items (as stated by CMA Ramesh above) is required to collect tax from the buyer (Payer0 a percentage of sale price as tax, which shall be termed as TCS (Tax collected at source)
In Both the cases, Payee in case of TDS & Payer in case of TCS, shall be eligible to claim the amount of TDS / TCS, as the case may be, from their tax payable during the year.
TCS - Here, seller (Payee) of certain specified items (as stated by CMA Ramesh above) is required to collect tax from the buyer (Payer0 a percentage of sale price as tax, which shall be termed as TCS (Tax collected at source)
In Both the cases, Payee in case of TDS & Payer in case of TCS, shall be eligible to claim the amount of TDS / TCS, as the case may be, from their tax payable during the year.
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