04 October 2008
Tax should be collected at source by specified sellers upon selling specified goods. The amount so collected on behalf of the buyer, should be deposited with the Government within a period of 1 week from the end of the month of such deduction. The amount so deducted and remitted shall be treated as remittance on behalf of the buyer and credit shall be allowed to the buyer from his tax liability. See section 206C of the Income tax Act, 1965.
04 October 2008
Sce 206C: TCS is the responsibility of the receiver of payment ie seller of particular commodities, to collect the tax from the buyer (payer) at source on the presumption that the buyer of the goods will have taxable income.
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