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Regarding TCS

25 July 2019

Previous year 2017-18 TCS is not considered while filing IT returns of the Company .This year how to treat that TCS ? whether it should be treated as income and tax is applicable on that income?

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RAJA P M ("Do the Right Thing...!!!") (127977 Points)
Replied 26 July 2019

Previous year 2017-18 TCS is not considered while filing IT returns of the Company .This year how to treat that TCS ?
- Are You get assessment order...??

whether it should be treated as income and tax is applicable on that income?

- Yes... But, Better to consider with Your CA.

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Ramakrishna Nayak (8 Points)
Replied 26 July 2019

As this is related to company, you con contact your Statutory Auditor and ask for his/her opinion.

Suresh Thiyagarajan (Student) (3986 Points)
Replied 26 July 2019

1. As per sec 206C, TCS is to be collected on the sale of certain goods which are very specific in nature and at the rate given in this section.
2. Unlike in other indirect tax where there will be input credit and then tax paid by the company. The net will be the tax expenses charged to Profit and loss account.
3. The main purpose of the introduction of TCS is to have a track on certain specific goods and high-value transactions. If we look at the transaction, the company merely acts as an intermediary for collecting the TCS and deposit the same within the due date and issue a TCS collection certificate to the buyer.
4. It is neither an expense nor an income to the company if you may observe the transaction. So, it cannot be shown as income or an expense and tax on the same can never be imposed.
5. However, an expert opinion may be a better option if the amount of TCS is high.
Please correct me if the above interpretation has an alternative view.