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TCS on items

Student (Others) (71 Points)

08 January 2008

Hi Everybody,

Is TCS deductible only on the cost or cost including Vat?

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4 Replies

Ramakrishna (Financial Executive) (438 Points)
Replied 09 January 2008

Dear friend, The exact term used in Section 206C(1) which speaks about TCS on various items, does not mention the word cost, instead uses the term 'at the time of debiting the amount payable by the buyer to the account of the buyeror at the time of receipt of such amount from the buyer'. Therefore, the VAT component which is definitely a part and parcel of the purchase amount has to be included in the calculation of TCS. Good bye! Cheers!!

Anandb (CA Final Student) (54 Points)
Replied 09 January 2008

According to me, TCS should be on the income of the Buyer and not on the Total Amount. No point in collecting Tax on Tax

(Guest)

Hi, Frnd Tcs is applicable on Cost + Sales Tax if any, we r using also we r the purchaser of scrap from M/s Northeren Railway Govt. of India Tcs collected by them on Cost + Sales Tax Student, ICWA