Question 6: Do TDS and TCS apply to the same transaction? Yes, Form 26AS contains details of the withholding tax (TCS) levied by a seller of certain goods when those goods were sold to you. It shows the seller`s data as well as the amount of the TCS and the transaction for which the tax was deducted at source. TDS is tax deductible when paying beyond certain limits, while TCS is a tax levied by the seller on the sale of certain goods. In addition, TDAs apply to payments such as salary; Praise; Interest; whereas the CHT apply to the sale of goods such as scrap metal; Wood; Leaves of Tendu; etc. The person collecting the TCS must apply for a TAN number. The TAN number is used as a reference for the information contained in all TCS returns and when collecting the withholding tax filed or the TCS. The due date for TCS and TDS in government is the same. Starting at 1. October 2020, these new regulations apply: – You should note the following: If TCS is not paid to the government, the seller will be charged 1% of the total unpaid amount as a penalty on the due date. The purchaser has the right to request from the PDO or the evaluating agent that the TCS be levied at a significantly lower rate using Form 13 if the PDO or tax officer is satisfied that the purchaser`s actual total income is justified for that lower tax rate.
AO may issue a special certificate indicating the withholding tax collection rate, indicating that the lower rate is applicable. Withholding tax, or TCS, is a tax levied on goods by the seller who collects them from the buyer at the time of sale. Section 206C of the Income Tax Act, 1961 sets out the goods and services to which the TCS applies. The threshold for TCS when selling goods is Rs. 50 lakhs. Sale of items for which the purchase is made in cash of more than Rs. 2 Lakhs A seller is classified as any person or organization authorized under the tax collected at source. The following are defined as sellers – Forest products that are not soft leaves or forest woods The NSDL is responsible for collecting e-TCS returns from Income Tax Service collectors.
TCS-specific multi-type formats should include all the details required to submit TCS returns. To understand this tax, let`s explain the process with an example. If a buyer buys a car costing Rs 10.01 lakhs, an amount of Rs 10,010 would be payable as TCS. This amount should be presented to a specific branch of the bank that has received government authorization to receive such payments. The person who sells these cars is only responsible for collecting the buyer`s money and paying it to the government, and he pays nothing himself (or) himself. Sale of old and new cars if the amount is more than Rs. 10 lakhs (effective June 1, 2016) The buyer must announce his eligibility for absolute exemption from the GTC on a form 27C. The declaration must indicate and prove that the proclaimed goods are intended for production and manufacture rather than sale. A duplicate of the declaration form must be sent to the person or body applying the fee and the collector must submit the declaration form to the competent authority within one week of the following day. The seller of the specified goods is obliged to invoice TCS at the following rates – the collection of withholding tax is the complete form of TCS. The buyer is responsible for paying the TCS invoice, which is collected from the renter or buyer. Section 206C of the Income Tax Act 1961 specifies the products.
The amount that must be displayed in the TCS (27EQ) return is 11200/- Make sure to make TDS payments in a timely manner, always using the RazorpayX instant TDS payment tool. Pay TDS in 30 seconds The table below gives the data for the payment of the TCS to the government: Under Rule 31AA, each SDC collector is required to submit an TCS declaration on Form 27EQ. In particular, the deadline for filing TCS`s quarterly return within the following deadlines – Mr. A buys a waste of INR 10,000 from Mr. B. As a salesman, Mr. B is required to collect TCS @ 1% on scrap sold to Mr A. As a result, she will receive INR 10,100 [selling price of INR 10,000 + INR 100 TCS]. Timber obtained from a method other than the leased forest The seller is not obliged to invoice TCS in the following cases: The TCS tax paid by the buyer of the goods will be deducted from his PAN.