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Pavan Goyal
Introduction
What is TCS?
Tax Collection at Source or TCS, as the name says, means collection of tax at source by the seller or collector, from the buyer of the goods. The Income Tax act, 1961 has prescribed that tax be collected by the seller from the buyer and deposited to the credit of the government.
Working Mechanism
Eg: Mr. A is the Seller and Mr. B is the Buyer.
Now when Mr. A sells Scrap to Mr. B for Rs. 100,000, then Mr. A shall collect Rs. 101,000. (Rs. 100,000 + 1% of 100,000 i.e 1,000) This way Mr. A will collect 1,000 Rs from Mr. B and deposit the same with the govt. Like TDS similar type of returns and TCS certificates are to be issued to the buyers
Rates of TCS
TCS rates.xlsx
Cases
TCS on Vat also i.e Basic + Vat and then TCS Shiv Sai
Any Questions