tcs and tds

TDS :- Tax Deduction at Source

Its deducted on exps like salary, commission, rent, interest,  etc. by company/ payer when Exps exceed on Thresh limit as per income tax Act   

TCS:-  Tax Collection at Source

Details are as under

DEAR VINAY

TAX DEDUCTED AT SOURCE (TDS): Any payment made or expenses provided in the books of account which are referred u/s(s) 192 to 196 D are subject to TDS. 

In other word, if we make payment for the expenses which are referred u/s above section, we shall deduct an amount calculated on rate prescribed by the government and the balance amount shall be paid to the parties.

Likewise if we are crediting any account for booking expenses which are referred u/s 192 to 196D . We shall debit party account for the amount of TDS which is to be deposited in to the governemnt account.

Example We pay Commission referred u/s 194h Rs.10000

Applicable TDS rate is 11.33% or 10.3%                         1133

                                                                   Payable Amt        8867/-

Tax Collection at Source arises on the part of the seller.

TAX COLLECTION AT  SOURCE(TCS): Every person being a seller collect tax from the buyer of goods mentioned u/s 206C of the income tax Act, 1961. and the same shall be charges by the seller on the invoice and shall be deposited in the government account in prescribed period.

Example: a Buyer sells Scrap for                                     Rs. 10000

Add: TCS @ 1.133% (if surcharge is applicable)                      113

                                                                                                         10113

TDS is deduction of tax at the time of making payment while TCS is tax collected while sale and remitted.....

Hi, Fiends.. this is phani from Vizag i competed Bcom now iam appearing CA-CPT.

Can anybody tell me how to computation fo Total Income of (Firm,Company, or an Individual )

and how to fill the ITR Challans

Thanking you.

With warm regards

Phani Kumar

I am a mine allottee and I have been paying Dead Rent for the mine, Should TCS is applicable on the Dead Rent Payment and if I pay the Royalty against the exploitation of the Mineral is there any TCS payable on royalty amount. Please explain in detail and also specify the section of Income-tax it will be paid.