What is TCS?

The seller has to collect tax from the payer who has purchased the following items :

  • Alcoholic liquor for human consumption
  • Tendu leaves
  • Timber obtained under a forest lease
  • Timber obtained by any mode other than under a forest lease
  • Any other forest produce not being timber or tendu leaves
  • Scrap
  • Parking lot
  • Toll plaza
  • Mining and quarrying

The TCS on the above mentioned items vary from 1% to 5%

Deposit of TCS amount– within seven days of the following month.

Issue of TCS certificate– within in one month of collection /debit(form 27D)

The rates of TCS for representative purpose (Financial Year 2010-11, 2011-2012):


More Under Income Tax


  1. CA.Dheeran says:

    We are selling scrap to end user i.e. manufacturer & not collecting TCS. Manufacturer Submit Form 27 C. My question is whether this form is to be submitted Once in a year or needs to be submmitted vehicle wise. I am of the opinion that Form 27 C needs to be submitted vehicle wise because the seller has to submit this form on a month to month basis to CIT. In case of different view please share with supporting.

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