Tcs

Hello,

TDS is paid by the person paying the amount, ie the payer will pay the seller net of TDS. For Eg bill amt Rs. 10000, TDS @ 1% then net amount that will be paid is Rs. 9900.

Now TCS is tax collected on source, this has been applied on only a few products like bullion, jewellery, Scrap, etc. It is taxed by the seller and the buyer pays the tax. it is covered u/s 206C. 

For eg: A(wholesale Jewellery Dealer) sells B( retail Dealer), jewellery of Rs. 1000000, then on basis of payment or credit whichever is earlier, A will collect TCS @ 1% from Mr. B i.e 10000, so in this case buyer will have to pay in total Rs.1010000.

Thanks,

Tanvi