TCS – A Tax collected at source and its Rates

Central Government

State Government

Local Authority

Statutory Corporation or Authority

Company registered under the Companies Act

Partnership firms

Co-operative Society

Any person or HUF who is subjected to an audit of accounts under Income tax act for a particular financial year.

1. Public sector companies

2. Central Government

3. State Government

4. Embassy of High Commission

5. Consulate and other Trade Representation of a Foreign Nation

6. Clubs such as sports clubs and social clubs

Goods covered under and Applicability of Tax rates

When the buyers and sellers deal in the
goods utilized for trading, TCS is payable and the tax payable is collected by
the seller at the point of sale.

Note -Tax Exemptions

• The goods mentioned in the list, if utilized for the purpose of
  manufacturing, production or processing things the taxes are not payable by the
  buyer.
• When the eligible goods are used for personal consumption

Goods specified under different categories have
different TCS rates

S. No	Types of goods on which TCS is payable	TCS Rate
1.	Liquor of alcoholic nature, made for consumption by humans	1%
2.	Timber wood under a forest leased	2.5%
3.	Tendu leaves	5%
4.	Timber wood by any other mode than forest leased	2.5%
5.	A forest produces other than Tendu leaves and timber	2.5%
6.	Scrap	1%
7.	Minerals like lignite, coal and iron ore	1%
8.	Bullion that exceeds over Rs. 2 lakhs/ Jewellery that exceeds over Rs. 5 lakhs	1%
9.	Purchase of Motor vehicle exceeding Rs. 10 Lakhs	1%
10.	Parking lot, Toll Plaza and Mining and Quarrying	2%

S. No	Types of goods on which TCS is payable	TCS Rate
1.	Liquor of alcoholic nature, made for consumption by humans	1%
2.	Timber wood under a forest leased	2.5%
3.	Tendu leaves	5%
4.	Timber wood by any other mode than forest leased	2.5%
5.	A forest produces other than Tendu leaves and timber	2.5%
6.	Scrap	1%
7.	Minerals like lignite, coal and iron ore	1%
8.	Bullion that exceeds over Rs. 2 lakhs/ Jewellery that exceeds over Rs. 5 lakhs	1%
9.	Purchase of Motor vehicle exceeding Rs. 10 Lakhs	1%
10.	Parking lot, Toll Plaza and Mining and Quarrying	2%

What are the due dates of filing the return
and making the payment to the government?

The due date for filing the return and
making the payment is as follows-

Months of collection	Quarter-end	Due date of payment	Due date of filing return
APRIL	30TH JUNE	7TH MAY	15TH JULY
MAY	7TH JUNE
JUNE	7TH JULY
JULY	30TH SEPTEMBER	7TH AUGUST	15TH OCTOBER
AUGUST	7TH SEPTEMBER
SEPTEMBER	7TH OCTOBER
OCTOBER	31ST DECEMBER	7TH NOVEMBER	15TH JANUARY
NOVEMBER	7TH DECEMBER
DECEMBER	7TH JANUARY
JANUARY	31ST MARCH	7TH FEBRUARY	15TH MAY
FEBRUARY	7TH MARCH
MARCH	7TH APRIL

Note

The seller deposits the TCS amount within 7 days in Challan
281 from the last day of the month in which the tax was collected and If in
any case, the tax collector does not collect the tax or after collecting
doesn’t pay it to the government as per above due dates, then he will be liable
to pay interest of 1% per month or a part of the month.

Tax Collector is the person responsible for
collecting the tax and depositing the same to the government

A quarterly TCS return i.e. Form 27EQis required to be submitted by every tax collector in respect of the tax collected by him in a particular quarter.

The interest on delay in
payment of TCS to the government should be paid before filing of the return.

When the certificate of TCS is issued?

A certificate is
issued for TCS return filed in Form 27D, as when the tax collector files
his quarterly TCS return i.e.  Form 27EQ, he has to provide a TCS
certificate to the buyer of the goods. The TCS certificate contains the
following details of the seller and the buyer both i.e.

• Name and PAN of
  both the seller and the buyer,
• TAN of the
  seller,
• A Sum of Tax
  collected by the seller from the buyer,
• Date of
  collection and rate of tax applied to the goods.

Time Duration for
issuance of TCS certificate

The TCS
certificate is required to be issued within 15 days from the date of filing the
quarterly return i.e.

Quarter Ending	Date for issuing the TCS certificate
Quarter ending on 30th June	30th July
Quarter ending on 30th September	30th October
Quarter ending on 31st December	30th January
Quarter ending on 31st March	30th May