What is TCS?
Tax collected at source (TCS) is the tax payable by a seller which he collects from the buyer at the time of sale. Section 206C of the Income-tax act governs the goods on which the seller has to collect tax from the purchasers.
Which sellers are required to Collect Tax at Source?
The following sellers are required to collect TCS:
- Central Government
- State Government
- Local Authority
- Statutory Corporation or Authority
- Company registered under the Companies Act
- Partnership firms
- Co-operative Society
- Any person or HUF who is subjected to an audit of accounts under the Income tax act for a particular financial year.
Which buyers are required to Pay Tax at Source?
The following buyers are required to pay TCS:
- Public sector companies
- Central Government
- State Government
- Embassy of High Commission
- Consulate and other Trade Representation of a Foreign Nation
- Clubs such as sports clubs and social clubs
Amendments in TCS as per budget for FY 2023-24
- TCS (Tax Collected at Source) has been raised to 20% for all remittances except those related to education or medical treatment.
- For education and medical treatment abroad, a 5% tax will be imposed on amounts exceeding ₹7 lakhs.
- The increased TCS rate of 20% will be applicable from 1 July 2023 onwards.
TCS Rate Chart for FY 2023-24 (AY 2024-25)
A. CATEGORY - 1: SECTION 206C (1)
|
TCS Deposit Challan Code/Description |
TCS Rate |
|
6CA - Alcoholic Liquor for Human Consumption |
1% |
|
6CB - Timber obtained under a forest lease |
2.5% |
|
6CC - Timber obtained by any mode other than under a forest lease |
2.5% |
|
6CD - Any other forest produce not being timber or tendu leaves |
2.5% |
|
6CE - Scrap |
1% |
|
6CI - Tendu Leaves |
5% |
|
6CJ - Minerals, being coal or lignite or iron ore |
1% |
|
6CK - Bullion & Jewellery |
— |
B. CATEGORY - 2: SECTION 206C (1C)
|
TCS Deposit Challan Code/Description |
TCS Rate |
|
6CF - Parking Lot |
2% |
|
6CG - Toll Plaza |
2% |
|
6CH - Mining & Quarrying |
2% |
C. CATEGORY - 3: SECTION 206C (1F)
|
TCS Deposit Challan Code/Description |
TCS Rate |
|
6CL - Motor Vehicle (any mode of payment) |
1% |
D. CATEGORY - 4: SECTION 206C (1E)
|
TCS Deposit Challan Code/Description |
TCS Rate |
|
6CM - Cash Sale of any goods (other than bullion/jewellery) |
— |
|
6CN - Providing any services (other than Ch-XVII-B) |
— |
E. CATEGORY - 5: SECTION 206C (1G)
|
TCS Deposit Challan Code/Description |
TCS Rate |
|
6CO - Overseas Tour Program Package |
5% (from 1st Oct 2023 the rate will be 20%) |
|
6CP - Remittance under LRS for education loan taken from financial institution mentioned under section 80E |
0.50% |
|
6CQ - Remittance under LRS (for purpose other than for purchase of overseas tour package or for education loan taken from financial institution mentioned under section 80E) |
5% (from 1st Oct 2023 the rate will be 20%) |
F. CATEGORY - 6: SECTION 206C (1H)
|
TCS Deposit Challan Code/Description |
TCS Rate |
|
6CR - Sale of Goods |
0.10% TCS in case of Non-Furnishing of PAN/Aadhaar:1% |
G. CATEGORY - 7: SECTION 206CCA
|
TCS Deposit Challan Code/Description |
TCS Rate |
|
Higher Rate of TCS for Non Filer of ITR |
— |
Note: Proposed section 206CCA of the Act would apply on any sum or amount received by a person (herein referred to as collectee) from a specified person. The proposed TCS rate in this section is higher of the following rates –
- Twice the rate specified in the relevant provision of the Act; or
- The rate of 5%.
Who is the person liable to furnish TCS Statements?
Every person responsible for the collection of tax at source shall be required to furnish quarterly statements in respect thereof.
What is the Form for filing TCS statements?
Quarterly TCS statements shall be furnished in Form No. 27EQ
What is the due date of filing of TCS Statements?
|
Quarter Ending of the Financial Year |
Due Dates |
|
30th June |
15th July of the financial year |
|
30th September |
15th October of the financial year |
|
31st December |
15th January of the financial year |
|
31st March |
15th May of the financial year immediately following the financial year in which collection is made. |
In which mode can users furnish TCS Statement Electronically?
The quarterly TCS statement shall be furnished electronically in any of the following modes:
- Furnishing the statement electronically under digital signature; or
- Furnishing the statement electronically along with the verification of the statement in Form 27A or verified through an electronic process.
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