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tcs and tds

vinay (article) (36 Points)

17 March 2010

hi, friends.. can anybody tell me the difference between tds and tcs

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5 Replies

Ram Avtar Singh (Nagari Sultanpur U.P.Delhi) (14477 Points)
Replied 17 March 2010

TDS :- Tax Deduction at Source

Its deducted on exps like salary, commission, rent, interest, etc. by company/ payer when Exps exceed on Thresh limit as per income tax Act

TCS:- Tax Collection at Source

Details are as under

Collection Code	Nature of Purchase	Tax (%)
6CA	Alcoholic liquor for human consumption	1
6CB	Timber obtained under a forest lease	2.5
6CC	Timber obtained under any mode other than forest lease	2.5
6CD	Any other forest product not being timber or tendu leave	2.5
6CE	Scrap	1
6CF	Parking Lot	2
6CG	Toll plaza	2
6CH	Mining and quarrying	2
6CI	Tendu leaves	5
Surcharge (On Tax)	Applicable for Foreign Companies if collections exceeds Rs.1 crore of such companies	2.5
Education Cess	Applicable for Foreign Companies	3

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Nomula Sreenivasarao (DGM -Accounts) (163 Points)
Replied 17 March 2010

DEAR VINAY

TAX DEDUCTED AT SOURCE (TDS): Any payment made or expenses provided in the books of account which are referred u/s(s) 192 to 196 D are subject to TDS.

In other word, if we make payment for the expenses which are referred u/s above section, we shall deduct an amount calculated on rate prescribed by the government and the balance amount shall be paid to the parties.

Likewise if we are crediting any account for booking expenses which are referred u/s 192 to 196D . We shall debit party account for the amount of TDS which is to be deposited in to the governemnt account.

Example We pay Commission referred u/s 194h Rs.10000

Applicable TDS rate is 11.33% or 10.3% 1133

Payable Amt 8867/-

Tax Collection at Source arises on the part of the seller.

TAX COLLECTION AT SOURCE(TCS): Every person being a seller collect tax from the buyer of goods mentioned u/s 206C of the income tax Act, 1961. and the same shall be charges by the seller on the invoice and shall be deposited in the government account in prescribed period.

Example: a Buyer sells Scrap for Rs. 10000

Add: TCS @ 1.133% (if surcharge is applicable) 113

10113

CA Priya (CS Final) (1049 Points)
Replied 17 March 2010

TDS is deduction of tax at the time of making payment while TCS is tax collected while sale and remitted.....

phani (asst accountant) (44 Points)
Replied 22 March 2011

Hi, Fiends.. this is phani from Vizag i competed Bcom now iam appearing CA-CPT.

Can anybody tell me how to computation fo Total Income of (Firm,Company, or an Individual )

and how to fill the ITR Challans

Thanking you.

With warm regards

Phani Kumar

Girish K Gupta (Accountant) (22 Points)
Replied 08 December 2020

I am a mine allottee and I have been paying Dead Rent for the mine, Should TCS is applicable on the Dead Rent Payment and if I pay the Royalty against the exploitation of the Mineral is there any TCS payable on royalty amount. Please explain in detail and also specify the section of Income-tax it will be paid.