What is tcs tax

It is important to invest in plans that can not only provide financial security, reduce future risk but also provide tax benefits. For instance, the term plan from Aegon Life can provide tax benefits on the premiums paid towards the policy, while also ensuring financial protection for your loved ones. Both of these are levied at the point of the origin of income. Tax collected by a seller when selling goods to a buyer What does it apply to? TDS deductions are made on payments including salary, rent, brokerage, professional fees, commission, interest etc.

TCS deductions are made on the sale of goods such as scrap, timber, mineral wood, tendu leaves etc When does it apply? On payments above a specified limit On the sale of certain goods barring those used for manufacturing or production Who does it apply to? Know More.

Calculate Premium. Impact of Union Budget on Insurance Sector. Date of Birth. Email ID. This tax needs to be collected while transactions, selling goods, issuing a receipt of cash taken from the buyer or issuing a draft or cheque whichever mode is use preferred by the buyer.

So, the seller acts as a middleman between the buyer and the government. Therefore this tax is paid by the consumer rather than the businessmen. But not everything is taxed used this source rather only some of the goods are taxed. The below-mentioned organization and people would be considered as sellers for the TCS A buyer is a person which has a single or individual entity or goods or people with the right of getting goods at any auction, tender, sale, or any other mode.

The below mentioned are the organizations and people that are not considered as buyers for TCS or tax collected at source When any tax collector fills up any quarterly returns, they need to submit to the buyer of the goods a TCS certificate.

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Central Government 2. State Government 3. Local Authority 4. Statutory Corporation or Authority 5. Company registered under Companies Act 6. Partnership firms 7. Co-operative Society 8. TCS is not necessary for the following buyers: a. Public Sector Companies b. Central Government c.

State Government d. Embassy of High commission e. Clubs such as Sports clubs and Social Clubs g. Local authority for the purpose of purchase of vehicle 8. Goods and transactions covered under TCS provisions and rates applicable to them The rate of TCS is different for goods specified under different categories : Nature of Goods Rate applicable from TCS Exemptions Tax collection at source is exempt in the following cases: a.

When the eligible goods are used for personal consumption b. Source- incometaxindia. Tags: tax collection , TCS.