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Difference between TDS & TCS ?

Purnima (student) (722 Points)

10 September 2008  
I want to know the difference between these two terms explain me clearly if anybody can

 13 Replies

Anuraag Sharma (Sr Executive Finance) (835 Points)
Replied 10 September 2008

Tds means tax deducted at source means any tax whch has been deducted while paying someone or while receiving income from someone refer sec. 194 for details while TCS is tax collected at source for example Mr. A has deducted TDS of Mr. Bfor paying him Interest on loan and he has collected this money and has not deposited till now then it is TCS for mr. A.......and as and wen mr. A will deposit this amont to any bank...or directly to the credit of central govt. then this will become TCS for that bank.......
3 Like

CA Annie (Chartered Accountant ) (742 Points)
Replied 11 September 2008

Tax deduction at Source (TDS)

Persons responsible for making payment of Income covered by the scheme of tax deduction is are required to deduct tax at source at the prescribed rates. Tax so deducted should be deposited within the prescribed time. Returns on TDS should be submitted within the specified time.

The income tax is deducted at source on

  • Salaries
  • Interest on Securities
  • Rent payments
  • Payments to Contractors and sub contractors
  • Payment of Commission or brokerage
  • Payment of fees for Professional/Technical Services
  • Payment of any income to Non Resident

Tax Collection at Source (TCS)

Tax Collection at Source arises on the part of the seller. The following goods when sold must be subjected to TCS and the taxes collected thereon must be remitted into department's accounts as done in the case of TDS

  • Alcoholic liquor for human consumption and Tendu leaves
  • Timber obtained under a Forest Lease
  • Timber obtained by any mode other than under a Forest Lease
  • Any other Forest produce not being Timber or Tendu Leaves
  • Scrap (waste and scrap from the manufacture or mechanical working of materials which is definitely not usable as such because of breakage, cutting up, wear and other reasons


5 Like

AMRITA PATTANAIK (article assistant) (39 Points)
Replied 11 September 2008

thnks 4 d info

CA Ravish Trivedi (The Possibilities are Infinite...)   (772 Points)
Replied 27 September 2008

Thanks for info


What is Diffrence between TDS &TCS


What is TCS in which expenses or in which department it is applicable, and who will issue the TCS certificate and how the deductee is benificiated.

Thanks & Regards.

Sreenivasa Sarma V V

vaibhav (CA & CS) (577 Points)
Replied 16 November 2008

Originally posted by :Guest
" What is TCS in which expenses or in which department it is applicable, and who will issue the TCS certificate and how the deductee is benificiated.
Thanks & Regards.
Sreenivasa Sarma V V

TDS means Tax deducted at source -----------i.e when you receive income you receive the net amt i.e. after decuction of tax this is known as tax deductd at soruce

and similary when you make payment to someone you cut tax and this is kunown as TCS tax collected at source


2 Like

sairam (student) (118 Points)
Replied 13 January 2010

hello vaibhav ur diff is superb

neetu (Student) (83 Points)
Replied 22 February 2010

can anyone tell me about TCS in brief?? Please I dont have any matter to study frm on this topic.....so plz do help me......

pankaj (ACCOUNTANT) (23 Points)
Replied 04 July 2011

First i want to say thanks for the info....

but can anyone please tell me Articleship is necessary for doing a job after completion of your CA

Replied 15 October 2011


Generally we touch with concept of TDS but here is given, Concept of TCS: - in this concept the seller of specified goods collect tax from the buyer under the section 206C 

Definition of buyer: - Buyer is a person who buys the goods for sale. The mode of buying may be direct purchase, tender or any auction to the specified goods. But these are not covered as buyers in Tax Collected at source (TCS) Act.

-          Central/State government.

-          Public company.

-          Embassy, High commission or representation of foreign country.

-          Any club.

-          Any person who buys the goods for personal consumption & not for sale.

Definition of seller: - seller of the specified goods is covered in TCS act. Seller may be

-          individual or huf

-          firm

-          co-operative society

-          company

-          state or central government

-          local authority

Specified goods: - Specified goods are those goods, sale or purchase of these goods attracts TCS. There are only some of goods which attract TCS and the list of these items is as follows.

1-      Alcoholic liquor for human consumption.

2-      Timber

3-      Tendu leaves.

4-      Forest produce other than timber and tendu leaves.

5-      Scrap or waste.

Mohit (Accountant) (21 Points)
Replied 15 December 2012

Neetu Ji,


Itne logo ne mention kiyahai dekh lo upar... comment marne ki kya jarurat thi.....



sachin (Student CA IPC / IPCC) (25 Points)
Replied 22 January 2014

TDS is actually a deduction while TCS is a collection of tax at source, meaning thereby, if X makes payment of Rs. 100 to Y and such payment is covered under the provisions of tds, then X will have to deduct tds say Rs. 10 and then will make payment of Rs. 90 to Y. 
While, if X sells goods worth Rs. 100 to Y and such goods are covered under the provisions of tcs, then X will collect Rs. 10 more from Y and hence the sale will be for Rs. 110. 
In both the cases Rs. 10 will be deposited to govt. account. 
Hope it will clarify the provision a little clear. ..

1 Like

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