Can anyone inform me about Tax Collected at Source (TCS)?
What are the statutory rules regarding TCS?
Regards
Dip Narayan Sarkar
Can anyone inform me about Tax Collected at Source (TCS)?
What are the statutory rules regarding TCS?
Regards
Dip Narayan Sarkar
TCS is liability of a person who recieve payment. The law has prescribed certain payments in respect of which the person recieving such payment (payee) has to collect tax along with the payment from the payer.
Alcoholic liquor for human consumption - 1%
Tendu leaves - 5%
Timber obtained under forest lease - 2.5%
Timber obtained by any mode other than forest lease - 2.5%
Any othe rforest produce not being timber or tendu leaves - 2.5%
Scrap - 1%
The person selling the above things or articles has to collect along with the payment, tax at the above mentioned rates.
Also, those persons who are giving license to use the following to the licensee shall have to collect TCS at following rates from the licensee:
Parking lot - 2%
Toll Plaza - 2%
Mining & quarrying - 2%
| Originally posted by : Dip Narayan | ||
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Every person, being a seller shall, at the time of debiting of the amount payable by the buyer to the account of the buyer or at the time of receipt of such amount from the said buyer in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, collect from the buyer a sum equal to the percentage, specified in the following Table, of such amount as income-tax:
a) Alcoholic Liquor for human consumption - 1 percent b) Tendu leaves - 5 percent c) Timber - 2.5 percent d) Any other forest produce not being timber or tendu leaves - 2.5 percent e) Scrap - 1 percent f) Parking lot - 2 percent g) Toll Plaza - 2 percent h) Mining & Quarring - 2 percent
“scrap” means 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 “buyer” means a person who obtains in any sale, by way of auction, tender or any other mode, goods of the nature specified in the Table above or the right to receive any such goods but does not include i) a public sector company, the Central Government, a State Government, and an embassy, a high commission, legation, commission, consulate and the trade representation, of a foreign State and a club; or ii) a buyer in the retail sale of such goods purchased by him for personal consumption. |
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