Wednesday, June 6, 2012

What is TCS (Tax Collected at source)


What is TCS?

The seller has to collect tax from the payer who has purchased the following items :
  • Alcoholic liquor for human consumption
  • Tendu leaves
  • Timber obtained under a forest lease
  • Timber obtained by any mode other than under a forest lease
  • Any other forest produce not being timber or tendu leaves
  • Scrap
  • Parking lot
  • Toll plaza
  • Mining and quarrying
The TCS on the above mentioned items vary from 1% to 5%
Deposit of TCS amount- within seven days of the following month.
Issue of TCS certificate- within in one month of collection /debit(form 27D)

The rates of TCS for representative purpose (Financial Year 2010-11):

TCS Rates2.png


Please note :
The information given above is to convey the general understanding of TDS and TCS provisions. For detailed information Income Tax Act 1961 shall be consulted. The changes in the Act may be incorporated in the information as and when required.

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