TDS and TCS Query

Hi Team,


We have recently processed a booking for a tour to Europe, with a total billing amount of ₹5 lakhs. The invoice for this booking was raised in the name of an individual. As per my understanding, in this scenario, 5% TCS (Tax Collected at Source) is applicable.


In another similar case, the invoice was raised in the name of a company, and the payment was also received from the company’s account. 


Could you please confirm the correct TCS and TDS (Tax Deducted at Source) implications for both these scenarios?

Thanks
Hemendra Negi

Looking forward to your guidance on this matter.
Replies (1)

I can provide general information on TCS (Tax Collected at Source) and TDS (Tax Deducted at Source) implications in India. However, please consult a tax professional or chartered accountant for specific advice on your scenarios. TCS: - Applicable on certain goods/services sales - Collected by the seller from the buyer - Rate varies depending on the goods/services and buyer type (individual, firm, etc.) - Deposit and return filing requirements apply TDS: - Applicable on certain payments (e.g., salaries, rent, professional fees) - Deducted by the payer (employer, tenant, etc.) - Rate varies depending on the payment type and recipient status (resident, non-resident, etc.) - Deposit and return filing requirements apply Regarding your scenarios: 1. *Form 26QB*: TDS on rental income (Section 194IB) - TDS rate: 5% (if rent exceeds ₹50,000 per month) - Who deducts: Payer (tenant) - When: At the time of credit or payment 2. *Demand notice*: TCS on goods/services sales (Section 206C) - TCS rate: Varies (e.g., 0.5% to 1% for certain goods) - Who collects: Seller - When: At the time of sale Please note that these are general explanations and may not cover all aspects or specific circumstances. For accurate advice, consult a tax professional or chartered accountant familiar with your situation and applicable laws.

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