even while wishing everyone u wanna ask a doubt...wow u are someone!
anyways:Full form of TCS is tax collection source it is the tax
which have to be collected by company from other's and it is
a income for the company it is a general term for everything...
it can even mean for tax upon parkign tickets collected by company
but sales tax is generally on goods...this is the major difference
Sales tax is levied on the sale of a commodity, which is produced or imported and sold for the first time. If the product is sold subsequently without being processed further, it is exempt from sales tax.
Sales Tax is a levy on purchase and sale of goods in India and is levied under the authority of both Central Legislation (Central Sales Tax) and State Governments Legislations (Sales Tax). The government levies Sales Tax principally on intra-state sale of goods. States also levy tax on transactions which are "deemed sales" like works contracts and leases.
In addition to Sales Tax, some states also levy additional tax, surcharge, turnover tax and the like. Ordinarily, Sales tax is recovered from the buyer as a part of consideration for sale of goods.
Sales tax is paid by every dealer on the sale of any goods made by him in the course of inter-state trade or commerce, despite the fact that no liability to tax is raised on the sale of goods under the tax laws of the appropriate state.
Tax Collection at Source or TCS, as the name implies, means collection of tax at source by the seller or collector, from the buyer of the goods. As prescribed under Income Tax Act 1961, it is mandatory on the part of the buyer to pay a predetermined value of TCS to the seller, while purchasing a particular commodity. TCS is generally set for business or trade in alcoholic liquor, forest produce, scarp, etc. Various lease, license and contracts related to areas like parking lot, mines and toll plaza also falls under the umbrella of TCS in India.
TCS is generally collected when amassed or when paid, whichever is earlier. The seller or collector who collects the tax is required to deposit it in any of the designated branches of the certified banks. Tax Collection at Source is implemented to curb tax evasion and also to facilitate proper tax collection in India. The various goods which come under the policy of TCS are listed below along with their rates.
Seller
The list of people for coverage under the scope of the seller for TCS is:
- The Central and State Government.
- Local authority.
- Statutory Corporation or Authority.
- Company.
- Firm.
- Co-operative society.
- Individual or Hindu undivided family (HUF) if covered under section 44AB (mandatory Audit).
Buyer
A buyer is one who gets in any sale by way of auction, tender or any other mode, specified goods or right to receive any such goods, but will not include
- Public sector Company.
- Central/ state Government.
- Embassy, a high commission, legation, consulate and the trade representation of a foreign state and
- A club.
- A buyer in the retail sale of such goods purchased for personal consumption.
Tax Collection At Lower Rate
- For tax collection at lower rate, a buyer can apply to his Assessing Officer in Form 13.
- After receiving application on Form 13, if the Assessing officer is satisfied, the assessing officer would issue such certificate directly to seller under advice to the buyer. The said rate is applicable for a particular seller, whose name is mentioned in the certificate and cannot be taken as all prevailing approval for all sellers for purchase of specified goods from anybody.
Exemption
- A buyer who purchases specified goods for manufacturing, processing or production of goods/article or thing and not for trading, no tax would be deducted. In such cases the buyer would declare it in Form 27C to the seller.
- The seller in turn would deliver one copy of Form 27C collected from buyer to Chief Commissioner/Commissioner of Income tax.
sales tax comes under sales tax act where as tcs comes under income tax act....
there u go....
CAclubindia
