Tax Collected at Supply, TCS Charges in India

Tax Collected at Supply (TCS) is to be collected by the vendor from the client on the time of sale of specified class of products. The TCS Charge is totally different for every class of products and the TCS so collected by the vendor from the client is to be required to be deposited with the government. The present TCS Charges in pressure have been enclosed herewith.

TCS Charges

Nature of Items TCS Charge
Alcoholic liqour for human consumption 1%
Tendu Leaves 5%
Timber obtained beneath a Forest Lease 2.5%
Timber obtained by any mode apart from Forest Lease 2.5%
Some other Forest produce not being forest timber or tendu leaves 2%
Scrap 1%
Parking Lot, Toll Plaza, Mining and Quarrying 2%
Minerals being Coal or Lignite or Iron ore (relevant from 1st July 2012) 1%
Bullion if consideration exceeds Rs. 2 Lakhs or jewelry, if consideration exceeds Rs. 5 Lakhs (and any quantity is obtained in money)  (relevant from 1st July 2012) 1%
Sale of Vehicles (each new and outdated) if Sale is above Rs. 10 Lakhs (relevant from 1st June 2016) 1%
Offering any service (apart from funds on which TDS has been deducted) exceeding Rs. 2 Lakhs 1%
Sale of any Items in Money exceeding Rs. 2 Lakhs 1%

The idea of TCS might be defined with the assistance of an instance. For instance: Mr X buys from Mr. Y scrap for Rs. 1000. So Mr. X can be liable to pay Rs. 1010 to Mr Y (1000 for Scrap and 1% of Rs. 1000 i.e. Rs. 10 as TCS). This TCS so collected by Mr. Y can be required to be deposited with the Govt. by Mr Y.

Credit score can be accessible to the client for the TCS so collected by the vendor from the client. This TCS might be claimed as a credit score by the client on the time of fee of taxes computed as per the earnings tax slab charges of the client. The Credit score so claimed by the client can be required to be disclosed within the earnings tax return.



Exception to applicability of TCS Charges

The requirement of tax assortment at supply shall not apply in case the client (supplied he’s resident in India), furnishes a declaration in Type 27C (in duplicate) to the particular person liable for gathering such TCS, that the products talked about above are for use for the aim of producing, processing or producing articles or issues and never for buying and selling functions.

A duplicate of the declaration so furnished by the client to the vendor shall be delivered by the vendor to the Chief Commissioner or Commissioner earlier than the 7th day of the month subsequent following the month during which the declaration is furnished by him.

Tax Assortment at Supply at Decrease Charge

If the assessing officer is glad that the whole earnings of the client justifies the gathering of TCS at a decrease price, the assessing officer shall, on an utility made by the client in Type 13, give to him a certificates, as could also be acceptable for the gathering of tax ay such decrease price.

The certificates so issued by the assessing officer shall be legitimate until the time such certificates is just not cancelled by the assessing officer.

Responsibility of the particular person gathering TCS

The customer who has collected the tax at supply is required to apply for a TAN No. This TAN No. is required to be quoted in all TCS Return Kinds and likewise on the time of deposit the TCS collected. The due date for depositing TCS with the government is similar because the due date of depositing TDS.

The particular person deducting the TCS can be required to furnish a TCS Return within the specified kind and format stating the character of products bought, worth of products bought and the TCS Charge thereon

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