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TCS

Due date to deposit TCS

The TCS collected by the seller shall be paid to the account of the Government by the 7 th  of the next
month.

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-

 

 

 

Section

Nature of Transaction

Goods and/or Services liable to TCS

Rate of TCS

Status

If PAN or Aadhaar is furnished

If PAN or Aadhaar is NOT furnished



206C(1)

Alcoholic Liquor for human consumption

1%

5%

Existing Provision

Tendu leaves

5%

10%

Existing Provision

Timber obtained under a forest lease

2.5%

5%

Existing Provision

Timber obtained by any mode other than under a forest lease

2.5%

5%

Existing Provision

Any other forest produce not being timber or tendu leaves

2.5%

5%

Existing Provision

Scrap

“scrap” means waste and scrap from the manufacture or mechanical working of materials which is definitely not usable as such because of breakage, cutting up, wear and other reasons

1%

5%

Existing Provision

Minerals, being coal or lignite or iron ore

1%

5%

Existing Provision



206C(1C)

Where the Nature of contract or licence or lease, etc.

Parking lot

2%

5%

Existing Provision

Toll plaza

2%

5%

Existing Provision

Mining and quarrying

shall not include mining and quarrying of mineral oil and “mineral oil” includes petroleum and natural gas

2%

5%

Existing Provision

206C(1F)

Sale of a motor vehicle of the value exceeding Rs. 10 Lakh

Sale of gold jewellery of the value exceeding Rs. 5 lakh

Sale of bullion of the value exceeding Rs. 2 lakhs

1%

5%

Existing Provision



206C(1G)

(w.e.f.

01-10-2020)

Remittance under Liberalised Remittance Scheme of Reserve Bank of India exceeding Rs. 7 Lakh





New Provision

(a) If the remittance is a loan obtained from any financial institution as defined in section 80E, for the purpose of pursuing any education

0.5%

5%

New Provision

(Amended by Finance Act, 2020)

(b) Others

5%

10%

New Provision

Sale of the Overseas Tour Package

5%

10%

New Provision

206C(1H)

(w.e.f.

01-10-2020)

Sale of goods in excess of Rs. 50 Lakh in a year by a seller whose turnover is more than Rs. 10 Crore

0.1%

  • NOTE: (TCS rate has been reduced from 0.1% to 0.075% from 1st October, 2020 to 31st March 2021).

1%

New Provision

  • TCS Payments & Returns

  1. 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

  1. 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

  1. 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
  1. 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.
  2. Form 27D is the certificate issued for TCS returns filed. This certificate contains the following details:
  3. Name of the Seller and Buyer
  4. TAN of the seller i.e who is filing the TCS return quarterly
  5. PAN of both seller and buyer
  6. Total tax collected by the seller
  7. Date of collection
  8. The rate of Tax applied
  9. This certificate has to be issued within 15 days from the date of filing TCS quarterly returns. The due dates are:

 

Quarter Ending

Date for generating Form 27D

For the quarter ending on 30th June

30th July

For the quarter ending on 30th September

30th October

For the quarter ending on 31st December

30th January

For the quarter ending on 31st March

30th May

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