THINGS TO KNOW BEFORE YOU REGISTER- TCS
TCS refers to the tax that a seller must pay and collects from the customer at the time of the sale. The items on which the seller is required to collect tax from the customers are governed by Section 206C of the Income Tax Act.
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Due Date To Deposit TCS
Summary Of Section 206-C At A Glance
Section 206C of the Act provides for the collection of tax at source (TCS). It has 11 sub-sections. Sub-sections (1) to (1H) provides for the rate of TCS on various sale of goods as follows-
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TCS Payments & Returns
- The dates for paying TCS to the government are:
|
Collection Month |
Quarter Ending |
Due date of Payment |
Due Date of filing return |
|
April |
30th June |
7th May |
15th July |
|
May |
7th June |
||
|
June |
7th July |
||
|
July |
30th September |
7th August |
15th October |
|
August |
7th September |
||
|
September |
7th October |
||
|
October |
31st December |
7th November |
15th January |
|
November |
7th December |
||
|
December |
7th January |
||
|
January |
31st March |
7th February |
15th May |
|
February |
7th March |
||
|
March |
7th April |
*All sums collected by an office of the Government should be deposited on the same day of collection.
Section 206C(1H) : TCS on Sale of Goods - Detailed
The seller deposits the TCS amount in Challan 281within 7 days from the last day of the month in which the tax was collected.
Note: If the tax collector responsible for collecting the tax and depositing the same to the government does not collect the tax or after collecting doesn’t pay it to the government as per above due dates, then he will be liable to pay interest of 1% per month or a part of the month
Every tax collector has to submit quarterly TCS return i.e in Form 27EQ in respect of the tax collected by him in a particular quarter. The interest on delay in payment of TCS to the government should be paid before filing of the return.
- Certificate of TCS
- When a tax collector files his quarterly TCS return i.e Form 27EQ, he has to provide a TCS certificate to the purchaser of the goods.
- Form 27D is the certificate issued for TCS returns filed. This certificate contains the following details:
- Name of the Seller and Buyer
- TAN of the seller i.e who is filing the TCS return quarterly
- PAN of both seller and buyer
- Total tax collected by the seller
- Date of collection
- The rate of Tax applied
- This certificate has to be issued within 15 days from the date of filing TCS quarterly returns. The due dates are: