What is TDS & TCS?
the person making payment is required to deduct tax at source (TDS) at prescribe rate. Payer is known as deductor and the payee, who receives the net payment is called the deductee. ● TCS is Tax Collected at Source by seller from buyers at the time of selling some prescribed goods.
TDS and TCS under GST is an acronym for tax deduction at source and tax collection at source. These terms are even present under the Income Tax law. TDS and TCS under GST came into effect from 1st October 2018.09-May-2022
What is the TCS tax?
Pay TCS. Scan QR code to download Income Tax Department Central Board of Direct Taxes Page 2 Tax collection at source (TCS) is an extra amount collected as tax by a seller of specified goods from the buyer at the time of sale over and above the sale amount and is remitted to the government account.
Where total turnover is more than Rs. 10 crores in the previous financial year and receives sale consideration of any products of more than Rs. 50 lakhs, such seller must collect TCS upon receiving consideration from the buyer on such amount over and above Rs. 50 lakhs, , as per Section 206C(IH).18-Apr-2022
Who can claim TCS?
What is Tax Collected at Source? TCS full form is Tax Collected at Source. This TCS tax is payable by the seller who collects in turn from the lessee or buyer. The goods are as specified under section 206C of the Income Tax Act, 1961.
Introduction The concept of TDS was introduced with an aim to collect tax from the very source of income. As per this concept, a person (deductor) who is liable to make payment of specified nature to any other person (deductee) shall deduct tax at source and remit the same into the account of the Central Government.
What is TDS and TCS return?
Tax Deducted at Source and Tax Collected at Source are both incurred at the source of income. TDS is the tax which is deducted on a payment made by a company to an individual, in case the amount exceeds a certain limit. TCS is the tax which is collected by sellers while selling something to buyers.
TCS to be calculated on customer advance payment (through general journal, cash receipt journal)
Is TCS refundable?
TCS tax paid by the buyer of the goods is credited against its PAN. Accordingly, the same is added to the tax payment of the buyer. TCS tax can be refunded, if the buyer is not able to utilize the same.02-Dec-2021
Tax Collected at Source or TCS -Example If a buyer is purchasing a car that costs Rs 10.01 lakhs then an amount of Rs 10,010 would be payable as TCS. This amount would need to be submitted to a particular branch of the bank which has been given permission by the government for receiving such payments.01-Aug-2022
On which amount TCS is deducted?
The Operator would deduct tax @ 1% of the net value of Rs. 1000/- i.e. Rs. 10/-. Let us have a look at the statutory provisions relating to TCS.
A seller needs to collect TCS at the rate of 0.1 per cent on receipts of sale consideration for sale of any goods of the value or aggregate of such value exceeding fifty lakh rupees. 3. If PAN/Aadhaar has not been provided by the buyer 5% TCS need to be collected.09-May-2021
When should we deduct TCS?
TCS will be deducted during the month in which the supply is made. It will be deposited within 10 days from the end of the month of supply to the credit of the government.13-Jan-2022
b) Levy of Penalty: If any person fails to collect the whole or any part of the tax, then such person shall be liable to pay by way of penalty under Section 271CA, a sum equal to the amount of tax which such person failed to collect.04-Apr-2022
How can I get TCS refund?
What is the procedure to claim this TCS as refund? Answer: GST TCS can be claimed by filing TDS /TCS Return under GST Portal. After logging in to the GST account in GST Portal (www.gst.gov.in), under Services è Returns è TDS and TCS credit received, after selecting year and month, this return can be filed.10-Mar-2021
TCS paid can be adjusted against tax payable, when individuals who would have paid TCS, file income tax returns (ITR) in India.
What is TDS example?
Let us take an example of TDS assuming the nature of payment is professional fees on which the specified rate is 10%. XYZ Ltd makes a payment of Rs 50,000/- towards professional fees to Mr. ABC, then XYZ Ltd shall deduct a tax of Rs 5,000/- and make a net payment of Rs 45,000/- (50,000/- deducted by Rs 5,000/-) to Mr.
TCS Rates
Why is TCS deducted?
Tax Collected at Source (TCS) It is deducted from a company or individual if the transaction exceeds a given limit. A seller collects this tax when selling commodities to the buyer.08-Aug-2022
The government has now made it mandatory for an individual to file income tax returns if his/her total TDS/TCS during the financial year is Rs 25,000 or more even if the individual's income is below the basic exemption limit.22-Apr-2022
How is TDS calculated on salary?
For example, if you are under 60 and your total taxable income is Rs 5 lakh, you must pay 5% of Rs 2.5 lakh as tax (income up to Rs 2.5 lakh is not taxable). Please note, TDS is deducted every month by your employer. So, your expected tax liability over the year is divided by 12 and collected every month.
What is TDS & TCS?