The full form of TCS is Tax collected at Source. Tax collected at source signifies the amount which has been collected by the buyer, but later this tax is submitted by the seller. Section 206C of the Income Tax Act specifies the list of goods for which the TCS is to be deducted. To make you understand what is TCS tax I will give an example.
Let's say you have purchased a box of chocolates worth Rs.100. From here the Rs.20 will be deducted from the seller which is considered as TCS. Later the seller submits the given amount to the bank. In this case, it is the responsibility of the seller to collect this tax from the buyer. This tax is collected for reasons including sales of goods, transactions, etc.
I will share the TCS rates in India
| Goods | Tax Rate |
Alcohol consumed by humans |
1.00% |
Timber Woods collected from leased forest |
2.50% |
Tendu Leaves |
5.00% |
Timber wood when not taken from forest but leased, any other mode |
2.50% |
Any product besides Tendu and Timber Wood |
2.00% |
Scrap |
1.00% |
Toll Plaza, Parking lot, Quarrying and Mining |
2.00% |
Minerals such as lignite or coal or iron ore |
1.00% |
Bullion worth over Rs. 2 lakhs/ Jewellery worth over Rs. 5 lakhs. |
1.00% |
I hope you understand what is tcs in income tax.
In TCS a seller can be someone who is:
Central Government
State Government
Local Authority
Statutory Corporation or Authority
Company
Partnership Firms
Co-operative Society
In TCS a buyer can be:
Companies
Central Government
State Government
Embassy of High Commission
Consulate and other Trade Representation of a Foreign Nation
Clubs such as sports clubs and social clubs
For a better understanding I will translate what is TCS tax in Hindi.
TCS का फुल फॉर्म टैक्स कलेक्टेड एट सोर्स है। स्रोत पर कर कटौती उस राशि को दर्शाती है जो खरीदार द्वारा एकत्र की गई है, लेकिन बाद में यह कर विक्रेता द्वारा जमा किया जाता है। आयकर अधिनियम की धारा 206C उन सामानों की सूची निर्दिष्ट करती है जिनके लिए टीसीएस काटा जाना है। आपको यह समझाने के लिए कि tcs tax क्या है, मैं एक उदाहरण दूंगा।
मान लीजिए आपने 100 रुपये की चॉकलेट का एक डिब्बा खरीदा है। यहां से विक्रेता से 20 रुपये काट लिए जाएंगे जिसे टीसीएस माना जाता है। बाद में विक्रेता दी गई राशि को बैंक में जमा कर देता है। इस मामले में, खरीदार से यह कर वसूल करने की जिम्मेदारी विक्रेता की होती है और यह कर उसके द्वारा भुगतान नहीं किया जाता है। यह कर माल की बिक्री, लेनदेन आदि सहित कारणों से एकत्र किया जाता है।
If I get more information on TCS I will share with you later. I hope you understand
what is TCS tax now.
Read more:
How To Make TCS Payment Online?
How to deposit TDS on purchase of property How to make TDS Payment onlineYour Feedback Matters! How was this Answer?
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Authors Of The Question
What is TCS in income tax?
Amrita
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1 Answers
2 Year
2022-03-31T18:25:11+00:00 2022-03-31T18:25:13+00:00Comment
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