TDS is actually a deduction while TCS is a collection of tax at source, meaning thereby, if X makes payment of Rs. 100 to Y and such payment is covered under the provisions of tds, then X will have to deduct tds say Rs. 10 and then will make payment of Rs. 90 to Y. While, if X sells goods worth Rs. 100 to Y and such goods are covered under the provisions of tcs, then X will collect Rs. 10 more from Y and hence the sale will be for Rs. 110. In both the cases Rs. 10 will be deposited to govt. account. Hope it will clarify the provision a little clear Regards. ca praveen
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