What is TCS?
The full form of the TCS is Tax Collected at Source. TCS is generally collected by the seller from the buyer at the time of sale and then he will remit that amount to the government. Section 206C of the Income Tax Act, 1961 is the governing section of the TCS. There are specific types of goods on which TCS is applicable. Some of the examples are as under:
- 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
Normally, the TCS on the above mentioned goods are vary from 1% to 5%. Sometimes, in non-PAN/ Aadhaar cases the rate shall be extend upto ten per cent.
The due date for deposit of TCS amount is seventh day of the following month.
Further, tax collector has to filed quarterly return for TCS in Form 27EQ. The due dates for Q1, Q2, Q3 and Q4 are 15th July, 15th October, 15th January and 15th May respectively.
[Note: Please note that due to COVID-19, the due date for Q1 and Q2 of FY 2020-21 has been extended upto 31st March, 2021.]
Also, after filing quarterly TCS return tax collector is responsible for providing TCS certificate to the purchaser. TCS certificate is in Form 27D. It should be issued within 15 days from the date of filing TCS return.
TCS Rate Chart For Assessment year 2021-22
| Section | Particulars | TCS Rates (in %) (Upto 13th May, 2020) | TCS Rates (in %) (From 14th May, 2020 to 31st March, 2021) |
| 206C(1) | Sale of the following: | ||
| a) Alcoholic Liquor for Human Consumption | 1% | 1% (No Change) | |
| b) Tendu leaves | 5% | 3.75% | |
| c) Timber obtained under a forest lease | 2.5% | 1.875% | |
| d) Timber obtained by any mode other than under a forest lease | 2.5% | 1.875% | |
| e) Any other forest produce not being timber or tendu leaves | 2.5% | 1.875% | |
| f) Scrap | 1% | 0.75% | |
| g) Minerals, being coal or lignite or iron ore | 1% | 0.75% | |
| 206C(1C) | Grant of lease or license of the following: | ||
| a) Parking lot | 2% | 1.5% | |
| b) Toll Plaza | 2% | 1.5% | |
| c) Mining and quarrying (Other than mining and quarrying of mineral oil, petroleum and natural gas) | 2% | 1.5% | |
| 206C(1F) | Sale of the motor vehicle of the value exceeding Rs. 10 lakh whether payment is received by cheque or by any other mode | 1% | 0.75% |
| 206C(1G)(a) | TCS on foreign remittance through Liberalised Remittance Scheme (LRS)
(This Section is inserted by Finance Act, 2020 which is proposed to be applicable from 01/10/2020) |
0.5%: Where remittance is a repayment of loan obtained for the purpose of pursuing any education.5% In any other case.(w.e.f. 01.10.2020) (10% for non PAN or Aadhaar cases) (W.e.f. 01/10/2020) |
0.5%: Where remittance is a repayment of loan obtained for the purpose of pursuing any education.5% In any other case.(w.e.f. 01.10.2020) (10% for non PAN or Aadhaar cases) (W.e.f. 01/10/2020) |
| 206C(1G)(b) | TCS on selling of overseas tour package
(This Section is inserted by Finance Act, 2020 which is proposed to be applicable from 01/10/2020) |
5%
(10% for non PAN or Aadhaar cases) (W.e.f. 01/10/2020) |
5%
(10% for non PAN or Aadhaar cases) (W.e.f. 01/10/2020) |
| 206C(1H) | TCS on sale of any goods [except goods on which TCS applicable as per Section 206C (1), 206C (1F) and 206C (1G)]
(This Section is inserted by Finance Act, 2020 which is proposed to be applicable from 01/10/2020) |
0.10%
(1% for non PAN or Aadhaar cases) (W.e.f. 01/10/2020) |
0.075%
(1% for non PAN or Aadhaar cases) (W.e.f. 01/10/2020) |
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(Republished with Amendments by Team Taxguru)
WHAT IS THE RATE OF TCS ON IRON ORE WEF 1.10.2020
WHAT IS THE RAE OF TCS ON IRON ORE
TCS wef 01/10/2020 is not Appliacble on sales made to Central Govt – Not mentioned anywhere in this article
is tcs applicable on parking lot?
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.