TCS Returns: TCS Collectors, Rates, Exemptions, & Due Dates
In section 206C of the Income Tax Act 1961, there is a provision that allows some sellers to collect tax at source while selling certain goods and services. Sellers collect tax at the source of goods and services and from the buyers and pay it out to the government. Sellers who have a Tax Collection Account Number can collect TCS. File your TCS Returns now with TaxDunia. The following taxpayers can collect TCS
- Central government
- State government
- Local authority
- Statutory corporation or authority
- Company registered under the Companies Act
- Partnership firms
- Co-operative society
- Any person or HUF is entitled to the audit of accounts
Individuals who procure goods or have the right to receive goods by way of auction, tender, or any other mode are classified as buyers for TCS. TCS is not collected from the following buyers
- Public sector companies
- Central and state government
- Embassy of the High Commission
- Consulate and another trade representative of a foreign nation
- Sports and social clubs
TCS Rates
| Types of Goods | TCS Rates |
| Total turnover is more than Rs 10 Cr in the last financial year, and receives sale consideration for any products amounting to more than Rs 50 lakh | .1% |
| Liquor of an Alcoholic nature, made for consumption by humans | 1% |
| Scrap | 1% |
| Minerals that include lignite coal or iron ore | 1% |
| Bullion that surpasses Rs 2 lakh/ jewelry exceeding Rs 5 lakh | 1% |
| Toll plaza, parking lot, quarrying, and mining | 2% |
| A forest product other than tendu leaves and timber | 2% |
| Timber wood, when collected from a forest that has been leased | 2.5% |
| Timber wood when not collected from a forest that has been leased, but by any other means | 2.5% |
| Tendu leaves | 5% |
Higher rates will apply in the following scenarios.
- The due date to file ITR has expired
- When ITR is not filed for the last two financial years before the relevant financial year in which TCS has to be collected
- The total amount of TCS and TDS is more than Rs 50,000 in each of these two financial years
Note– either 5% TCS will be applicable in the above scenarios, or the rate will be two times the TCS rate mentioned in the table (as per the Income Tax Act)
Due Dates to File & Generate TCS
| Quarter | Period | Due Date to File TCS | Date to Generate Form 27D |
| 1st | 1st April to 30th June | 15th July | 30th July |
| 2nd | 1st July to 30th September | 15th of October | 30th October |
| 3rd | 1st October to 31st December | 15th of January | 30th January |
| 4th | 1st January to 31st March | 15th of May | 30th May |
TCS Exemptions
Under the following circumstances, TCS is exempted
- When the eligible goods under the TCS are used for personal consumption
- When the purchaser buys the goods for manufacturing, processing, or production purposes, not for trading
Scenarios Under Which TCS is Deposited without a Challan?
- In case TCS is deposited without a challan, the person to whom the collector has reported the TCS must submit Form 24G to the authorized agency
- The challan form 24G must be submitted within 15 days of the end of the respective month
- The Form 24G is issued
- Electronically under a digital signature
- Along with verification in Form 27A
- Verified through an electronic process
- The Principal Director General of Income Tax should specify the procedure for furnishing
- The Principal General has verified the statement from 24G
To get TCS/TDS services and other advice related to finance and taxation, you can reach out to the seasoned team of TaxDunia. Our personalized solutions support businesses to grow fast and steadily. Let us start working together today itself.
