Tax Collected At Source

 TCS is the Tax Collected at Source by the seller from the buyer. The goods are as specified under section 206C of the Income Tax Act, 1961.

Example: -

If purchase value of goods is Rs.10, 000/-, the buyer will pay an amount of Rs.10, 000 +TAX

Goods and Transactions classified under TCS

1)     Alcoholic liquor for human consumption including Indian Made Foreign Liquor (IMFL)

2)     Tendu leaves

3)     Timber obtained under a forest lease

4)     Timber obtained by any mode other than under a forest lease

5)     Any other forest produces not being Timber or Tendu

6)     Scrap (Scrap means waste and scrap from the manufacture or mechanical working of materials which is usable as such because of breakage, cutting up, wear and tear and other reasons)

7)     Licensing or leasing of Parking Lot, Toll Plaza

Payment of TCS to the Government

The tax collected is to be paid to the Central Government within one week of the last day of the month in which the tax was collected. This payment is made in any branch of Reserve Bank of India (RBI), State Bank of India (SBI), or any other authorized bank. The payment is made accompanied by income tax challan 281. If the tax is collected on behalf of the Government, then the amount can be paid without the income tax challan.

Certificate: - 27D WILL BE ISSUED.

Filing of TCS Returns

TCS returns are to be filed quarterly, in addition to annual returns.

Form	Periodicity	Due Date
Form 27EQ	Quarterly	On or before 15th July, 15th October, 15th January and 30th April.
Form 27 E	Annual	On or before 30th June, following the financial year.
Form 27B	Annual / Quarterly	Filed in physical form with each return i.e., Form 27E and Form 27EQ.