1. As per sec 206C, TCS is to be collected on the sale of certain goods which are very specific in nature and at the rate given in this section.
2. Unlike in other indirect tax where there will be input credit and then tax paid by the company. The net will be the tax expenses charged to Profit and loss account.
3. The main purpose of the introduction of TCS is to have a track on certain specific goods and high-value transactions. If we look at the transaction, the company merely acts as an intermediary for collecting the TCS and deposit the same within the due date and issue a TCS collection certificate to the buyer.
4. It is neither an expense nor an income to the company if you may observe the transaction. So, it cannot be shown as income or an expense and tax on the same can never be imposed.
5. However, an expert opinion may be a better option if the amount of TCS is high.
Please correct me if the above interpretation has an alternative view.
Shaswat initial support private limited
Ahmedabad
CS
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