TCS (TAX COLLECTED AT SOURCE)
TCS is the tax collected by the seller while selling some specific goods to buyer. It is responsibility of the seller to collect and deposit TCS. Following table depicts the nature of transaction and TCS rates.
TCS is also applicable in case of remittance and following are relevant pointers:
- Foreign remittance through Liberalised Remittance Scheme (LRS) of exceeding Rs. 7 Lakh in a financial year if the remitted amount is out of loan obtained from any financial institution u/s 80E to pursue any education = TCS will be 0.5%
- Foreign remittance through Liberalised Remittance Scheme (LRS) of exceeding Rs. 7 Lakh in any other case = TCS will be 5%.
- DUE DATES FOR TCS RETURN:
- 1st Quarter – 1st April to 30th June – 15th July.
- 2nd Quarter – 1st July to 30th September – 15th October.
- 3rd Quarter- 1st October to 31st December – 15th January.
- 4th Quarter- 1st January to 31st March – 15th May.
- DUE DATES FOR TCS PAYMENT:
- Due date for payment of TCS for a particular month is always 7th day of the next month.
- However, due date for payment of TCS for the month of March is 30th April.
- The late fees for delay in TCS payment or TCS return after its due date shall be Rs. 200/- per day subject to maximum amount of the tax liability.
| NATURE OF TRANSACTION | RATES |
|---|---|
| Alcoholic liquor for human consumption | 1% |
| Timber obtained under Forest lease | 2.5% |
| Timber obtained by any mode other than under a forest lease | 2.5% |
| Any other forest produce not being timber or tendu leaves | 2.5% |
| Scrap | 1% |
| Tendu Leaves | 5% |
| Minerals, being coal or lignite or iron ore | 1% |
| Grant of license or lease etc., of parking lot or Toll Plaza | 2% |
| Motor vehicle of value more than Rs. 10 lakhs | 1% |
| Sale of overseas tour package | 5% |
| Sale of goods in excess of Rs 50 lakhs in a year by a seller whose turnover is more than Rs 10 crore | 0.1% |