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tcs:tax collected at source, basic difference between tds and tcs is tds is deducted on payment and tcs is collected

on receipts. i think all about tds so its easy to explain you tcs. tcs is applicable u/s 206 c of i.tax act and applicable on following items (i)Alcoholic Liquor for human consumption one per cent (ii)Tendu leaves Five per cent (iii)Timber obtained under a forest lease two and one-half per cent (iv)Timber obtained by any mode other than under a forest lease Two and one-half per cent (v)Any other forest produce not being timber or tendu leaves Two and one-half per cent (vi)Scrap One per cent:] detail can be checked from link given below and click section 206 c there TDS:- Tax Deducted at Source (The payer deduct the taxes on specified expenditures/ payments) TCS:- Tax Collected at Source (The seller/ payee collect taxes from the payer)

TDS is deducted on payment from the amount paid or credited in books which ever is earlier. Say you are making payment of RS. 100/- towards contractual services, you deduct TDS @ 2.266% = Rs. 2.67 and pay Rs. 97.33 TCS is collected in addition to the sales prices of certain specified items. For eg. on sale of scrap TCS to be collected is 1.133% Say for 100 Rs. sale of scrap you have to collect TCS @ 1.133% = 1.13 Rs. So. you must recieve Rs. 101.13 Both the collections are to be deposited with bank into respective accounts TDS : Aper IT Act 1961, every employer should deduct the following Taxes considering various works / services being hired while settling the Bills. TDS: Tax deducted at Source: Employees on salaries & Wages sec 192 Contractors including labour and materials/ profession services / rents / commissions or brokerage Sec 194 TCS: Tax collected at Source: Tax is to be collected on sale of certain items like scrap etc. which involves trading activity and shall be payable to IT Department. VAT: is a Value Added Tax which comes under Commercial Tax Dept on sale of various materials. There is WCT: Works Contract Act which also comes under Commercial Tax Department. It is payable on all contracts which includes both supply of material and labour. 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):

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