Please tell me What is TCS and what is the responsibility of the buyer whether buyer is required to file any return or not and if yes then what is the due date to file the return.
02 August 2011
TCS is tax collected at source. In the below mention cases a Seller have to collect TCS from the buyer of the good (prescribed percentage) some goods on which seller is required to collect TCS are sale of scrap, wood (forest products), liquor etc.
Suppose Mr A sells Timber to Mr. B for Rs. 100. then he have to collect TCS from Mr. B @ 2.5% thus he will collect Rs. 102.5 from Mr. B and deposit Rs. 2.5 with Government like we deposit TDS.
There are several Responsibility on the Seller like to Apply for TAN, File return, deposit collected amount, issue Certificate on form 27D to the buyer.
As per me resp. of buyer is to provide PAN to the seller. He needs to file return if his Taxable income (total income) is above exemption limit or he want to claim refund of the above colleced Tax.
03 August 2011
The Provisions of TCS are to be observed by SELLER of Scrap, Liquior, forest products. TCS is collected by the seller from the buyer. The liability of TCS payment and return filing is same as that of TDS provisions and applicable to Seller. On the basis of TCS certificate from the seller, the buyer of goods can claim credit of TCS amount against his income tax iability.
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