hi, friends.. can anybody tell me the difference between tds and tcs
Ram Avtar Singh
(Nagari Sultanpur U.P.Delhi)
(14487 Points)
Replied 17 March 2010
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
Collection Code | Nature of Purchase | Tax (%) |
6CA | Alcoholic liquor for human consumption | 1 |
6CB | Timber obtained under a forest lease | 2.5 |
6CC | Timber obtained under any mode other than forest lease | 2.5 |
6CD | Any other forest product not being timber or tendu leave | 2.5 |
6CE | Scrap | 1 |
6CF | Parking Lot | 2 |
6CG | Toll plaza | 2 |
6CH | Mining and quarrying | 2 |
6CI | Tendu leaves | 5 |
Surcharge (On Tax) |
Applicable for Foreign Companies if collections exceeds Rs.1 crore of such companies | 2.5 |
Education Cess | Applicable for Foreign Companies | 3 |
Nomula Sreenivasarao
(DGM -Accounts)
(163 Points)
Replied 17 March 2010
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
CA Priya
(CS Final)
(1049 Points)
Replied 17 March 2010
TDS is deduction of tax at the time of making payment while TCS is tax collected while sale and remitted.....
phani
(asst accountant)
(44 Points)
Replied 22 March 2011
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
Girish K Gupta
(Accountant)
(22 Points)
Replied 08 December 2020
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.
Live Course on Invoice Management System (IMS) - 2nd Batch(With Recording)