Difference between TDS and TCS

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S.Siju Gemin (Querist)
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21 December 2009 Dear Experts,
Could you kindly tell me, what is the basic difference between TDS and TCS. Also to which sector the TCS is normally applicable.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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21 December 2009 TDS- Tax Deducted at source Generally Deducted by the person who is making payment against the expenses ( for services received )

TCS- Tax collected at source When the sellr of the follwing goods as specfied U/s.206(1)

1.Alcoholic Liquor for Human consumption
2.Tendu Leaves
3.Timber Obtained under a forest lease
4.scarp
5.Parkinglot,toll plaza,mining and quarrying

while selling the seller collecting from the buyer of the particular product