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Section 206c of tax act

JAYANTA KUMAR BANDYOPADHYAY (professional service) (293 Points)

26 November 2013

u/s.206C of Income Tax Act, 1% TCS is payable to seller of coal. Can buyer take credit of this tax? My reading is that it is unlike Cenvat / VAT Credit.Please guide me.

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prashant (article) (21 Points)
Replied 26 November 2013

Tcs stands in par as with tds as tds is available for credit in income tax liability same as tcs can be availed as credit frm incometax liability not as vat/cenvat credit

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sarath (CA) (82 Points)
Replied 29 November 2013

Dear Jayant,

TCS Refers to Tax Collection at Source and is a Part of Mechanisms under income Tax Act,1961. The TCS Is Just Like TDS, Where Tax is Collected At Source.

The Seller Who collects the Tax From the Buyer Under TCS Mechanism will issue a TCS Certificate. which the Buyer can Claim against Income Tax , Just like TDS, At the end of the Year, While Filing Income Tax Return.

You Can refer Below Link: https://www.exploreincometax.com/Income-tax-Ready-Reckoners/tcs-rates-tcs-compliances .. This Explains Everything about TCS Mechanism and Explains you in detail about TCS.

If you need Bare Act on TCS you can Refer Link: https://www.exploreincometax.com/Indian-Income-tax-Act-1961/Section-206C