Tax Collected at Source (TCS) in Tally Prime

· TCS – Tax collected at source is what seller collects from buyers while selling a specified category of goods. The TCS rates vary for all categories of goods. In TCS that seller collects TCS from buyers needs to deposit to government. All the goods on which the seller levies tax from the buyers are governed under the section of “206” of Income tax act.

TAN (Tax Deduction and Collection Account Number) is needed to be obtained by those persons who are responsible for deducting and collecting TCS, It is 10 digit formats like “DELA012457G”. In TAN Number formats first 3 Characters are City’s name of TCS Collector and 4 characters is First letters of Name of Collector.

Note: In TCS, Person who Collects TCS from buyers is called ‘Collector (Seller)’ and Persons whom TCS Collected by any Collector is called ‘Collectee (Buyer)’.

. TCS is applicable on Specified Goods and Rates which is given in following tables under section 206C defined by Indian government.

Payment code

Types of Goods

Applicable from 14/05/2020 to 31/03/2021

TCS Rate (%)

6CA

Liquor of alcoholic nature, made for

consumption by humans

0.75%

6CB

Timber wood under a forest leased

1.875%

6CI

Tendu leaves

3.75%

6CC

Timber wood by any other mode than forest

leased

1.875%

6CD

A forest produce other than Tendu leaves and

timber

1.875%

6CE

Scrap

0.75%

6CE

Minerals like lignite, coal and iron ore

0.75%

Bullion that exceeds over Rs. 2 lakhs/ Jewellery

that exceeds over Rs. 5 lakhs

0.75%

6CE

Purchase of Motor vehicle exceeding Rs. 10

Lakhs

0.75%

6CF

Parking lot

1.5%

6CG

Toll Plaza

1.5%

6CH

Mining and Quarrying

1.5%

· Classification of Sellers and Buyers for TCS

Types of sellers who is eligible to Collect TCS

Types of Buyers who liable to Pay TCS

State Government

State Government

Central government

Embassy of High Commission

Local Authority

Public Sector Companies

Partnership firm

Central government

Companies registered under the company Act

Trade Representation of a foreign Nation

Statutory Corporation or Authority

Consulates

Co-operative Society

Sports club/Social club

Any HUF or Person who is eligible for an Audit of his

Accounts under the Income-tax act during a fiscal year

· TCS Returns – A TCS Return is a summary of all the transactions related to TCS made during a quarter. TCS Return is a quarterly statement submitted by the Collector to the Income Tax Department. The statement shows a summary of all the entries for TCS collected by the Collector and the TCS paid by the Collector to the Income Tax Authority.

The TCS Return statement includes details like the PAN number of the Collector & the Collectee, all the detailed particulars of the TCS paid to the government and the TCS Challan information.

· Types of TCS Returns which is filed by Collector

Types of TCS Returns forms

Description about Returns Forms

Form 27EQ

Quarterly statement that mention details and information regarding Tax collected at

source at the end of every quarter

Form 27E

Annual Statement that mentions details and information regarding Tax collected at

source

· Dues Dates for TCS Payments & Return

Collection

Months

Quarter

Quarter Period

Due Dates for

Payment TDS

Due dates for

filing returns

April

1st Quarter

1st April to 30th June

Up to 7th April

Up to 15th July

May

Up to 7th May

June

Up to 7th June

July

2nd Quarter

1st July to 30th September

Up to 7th July

Up to 15th October

August

Up to 7th August

September

Up to 7th September

October

3rd Quarter

1st October to 31st December

Up to 7th October

Up to 15th January

November

Up to 7th November

December

Up to 7th December

January

4th Quarter

1st January to 31st March

Up to 7th January

Up to 15th May

February

Up to 7th February

March

Up to 7th March

Note 1: In case of PAN/Adhar is not available of Collectee, Collector Collects TCS twice of the normal rate applicable or 5% from Collectee

Note 2: For Payment of TCS Challan ITNS 281 is used

Note 3: TCS is not applicable on Purchased goods for Personal consumption/use

Note 4: TCS is not applicable for the purchaser buys the goods for manufacturing, processing or production and not for the purpose of trading of those goods.

Note 5: TCS under GST applicable when Dealer/Traders are e-commerce party.

· TCS Certificate – TCS certificates is a proof document of all about TCS Collection from buyers. This Certificate issued by Collector to the Buyers. It is issued upon the filling of TCS returns. In this certificate all information mentioned about TCS collection such as Buyer and Seller’s name, PAN number of both the buyer and seller, Seller’s TAN number, Date of Collection of TCS, Total Tax collected by Seller and Applicable TCS tax rates etc.

Types of TDS Certificate

Certificate type

Description of

certificate For

Issue Frequency

Dues Dates

27D

All about TCS collection

Quarterly

This Certificate is issued within 15 days after dues dates of filling quarterly return of TCS