Tax Collected at Source (TCS) – Payment & Rates I Certificate of TCS

TCS is the tax payable by a seller which he collects from a buyer at the time of sale. TCS will be governed through section 206C of the Income Tax Act.

Please note, TCS need not be collected, when these goods are utilized for the purpose of manufacturing, processing, or producing things.
Hence, TCS has to be collected only when these goods are utilized for trading purposes.
Every tax collector has to submit quarterly TCS returns i.e in Form 27EQ. This return should be filed on or before 15th of the month succeeding the quarter. However, the return for quarter ending on 31st March can be filed on or before 31st May. For example, the return for July to September quarter should be filed on or before 15th October.
If the tax collector fails to collect the tax or does not deposit the tax collection made to the government as per the stipulated due dates, then he or she will be liable to pay interest of 1% per month or a part of the month

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

#tcs #taxcollectedatsource #tcspayments #tcsrates #tcscertificate

[hariomsharma]

It would apply to transactions in sale of electricity bill (renewable energy)

[akaashagarwal]

Information given is wrong about the rates. 206C(1D) that says about tcs on Bullion and Jewellery is abolished from April 2017. Please correct it. And also please correct the same in your cleartax web page where same is written. Also add TCS applicable wef Oct 2020. Normal layman are getting distracted by this. Thank you

[thereviewstation]

I think By mistake instead of 2% you said 1% tcs at toll plaza