26 June 2021
Sir, Please clarify me the following question? TCS on sale of goods is collected higher than the rate what is specified in the Act, i.e. Actual TCS rate on sale of goods is 0.075% for the period from 01.10.2020 to 31.03.2021. But in some invoices TCS was collected wrongly at 0.75% for the month of Oct-2020. Till Now TCS Return i.e. Form 27EQ for the 3rd quarter of F.Y:2020-2021 was not filed. Now at which TCS rate we file the TCS Return i.e. 0.075% or 0.75%. If we want to file the TCS Return at 0.075%, the excess amount collected could be credited to party account by issuing a credit note. Please clarify me this could be RIGHT or WRONG & please clarify me what is the consequences of non filing of TCS return? THANK YOU SIR.
26 June 2021
I think tax collected at higher rates may not be a problem unless it is not possible to record this in the TCS return. Whatever amount collected will get credited in the account of collectee and the collectee can adjust this while filing ITR. Alternatively, excess TCS paid can be offset against future liabilities while filing TCS return and the excess amount can be credited to the account of the collectee via C/N. Late fee has to be paid for delayed filing of TCS return
CAclubindia
