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tds

TDS / TCS 1140 views 5 replies

When to deduct TDS
i have been told not to deduct TDS where we are paying VAT to Payee
and to deduct TDS where we Are paying Service Tax to payee

What make it different ????
 

Replies (5)
If you are paying VAT it means you are doing some sales for which there is no TDS. You have to deduct Tax only if the payment comes under the purview of section 194.
TDS is applicable only on Services not on Purchases. but here the tds is to be deduct either Invoice booking or Advance payment made which ever is earlier.

what is tcs

tcs means tax collection at source

when co. sale scrap it can collect tcs on its saleable value

i.e. @ 1% tcs + surcharge +education cess

TCS REFERS TO TAX COLLECTED AT SOURCE IT IS COVERED U/S 206A OF THE IT ACT. IT IS QUITE SIMILAR TO TDS

 

HOW 2 COMPUTE TCS

ALCOHOLIC LIQUOR FOR HUMAN CONSUMPTION, SCRAP  @ 1%

PARKING LOT, TOLL PLAZA @ 2%

ANY FOREST PRODUCE, TIMBER OBTAINED BY ANY MEANS, TENDU LEAVES @ 2.5%


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