INCOME TAX DEPARTMENT TDS, RAJKOT

Welcome to the seminar on Tax Deducted at Source (TDS) and Tax Collection at Source (TCS) provisions organized by the Income Tax Department in Rajkot. Learn about TCS rates, seller and buyer classifications, exemptions, and more. Stay informed and compliant with tax regulations.

• Tax
• Seminar
• TDS
• TCS
• Income Tax Department

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1. INCOME TAX DEPARTMENT TDS, RAJKOT Welcome to Seminar on TDS/TCS Provisions Dt. 9-4-2023

2. :Tax Collection At Source (TCS): Tax Collection at Source (TCS) is an additional amount collected as tax by seller of specified goods from the buyer at the time of sale. As per Income Tax Act seller must collect a specified percentage of amount from the buyer and remit to the Govt. Account at the time of receipt sale amount or at the time of debiting the account of the buyer whichever is earlier. Section 206C of the Income Tax Act provides the particulars of goods, on sale of which tax needs to be collected from the buyer.

3. :Classification of Seller & Buyer for TCS: 1) A seller is defined as any of the following:: a) Central Government b) State Government c) Local Authority d) Statutory Corporation or Authority e) Company registered under Company s Act f) Partnership firm g) Co-operative Society h) Any person or HUF who is subject to audit of accounts under Income Tax Act for a particular financial year 2) A Buyer is defined as any of the following:: A buyer is classified as a person who obtains goods or the rights to receive the goods in any sale, auction, tender or any other mode.

4. :RATE OF TCS: Sr. No Nature of Goods Applicable Rate of TCS 1 Alcoholic Liquor for Human Consumption 1% 2 Tendu Leaves 5% 3. Timber obtained under a forest lease or any other mode than forest lease A forest produce other than Tendu leaves and timber Scrap 2.5% 4. 2.5% 5. 1% 6. Minerals like Lignite, Coal and Iron ore 1% 7. Purchase of Motor Vehicle Exceeding Rs. 10 Lakh Parking Lot, Toll Plaza, Mining and Quarrying Overseas Tour Program Package more than Rs. 7 Lakh 1% 8. 2% 9. 5% 10. Remittance under (Liberalised Remittance Scheme) 0.5%

5. :RATE OF TCS: Note: 1. If the payer does not furnish PAN/Aadhaar to TCS collector then rate of TCS is double or 5% whichever is higher for SI. No. 1 to 10 and for SI. No. 11 it is 5%. 2. With effect from 01.07.2021 if the payer (other than Non-resident who does not have Permanent Establishment in India) and has not filed the IT Return for last 2 Assessment Years, TCS rate is double or 5% whichever is higher

6. EXEMPTIONS TO COLLECT TCS Rule 37C(1): As per the rule a declaration u/s 206C(1A) a declaration in form 27C is to be obtained by seller from the buyer at the time of sale. This form is required to be uploaded on portal on or before 7thday of the next month. Previously this forms were to be submitted manually to Commissioner of Income Tax having jurisdiction of assesse. Rule 37J: As per the rule a certificate from an accountant in form 27BA to be furnished. As per instruction no. 12 of 2016 this certificate is required to be furnished in electronic mode upto F.Y. 2016-17. However it is required to ensure that the interest on non collection of tax at source is paid before filling the form in electronic mode.

7. ::TIME LIMITS:: TCS is required to be collected at the time of receipt of amount or debiting the account in books of accounts. TCS, so collected, is required to be remitted in Govt. A/c within one week of last day of the month in which TCS so collected. In case of Government office the TCS is required to be remitted on the same day.

8. TCS STATEMENTS TIME LIMIT TO FILE QURTERLY STATEMENTS TO BE FILED IN FORM 27EQ TIME LIMITS::: For Q-1 15thJuly For Q-2 For Q-3 For Q-4 15thOct. 15thJan. 15thMay

9. CONSEQUANCES INTEREST: Interest u/s 206C(7) of the Act is attracted @ 1% for every default month. PENALTY: Sec. 271CA: Penalty for failure to collect TCS which is a sum equal to amount of TCS. This penalty to be levied by Addl.CIT/JCIT, TDS. Sec. 271H: ( w.e.f. 1-7-2012) Penalty for failure to furnish statement. The amount of Penalty will be minimum 10000/- which may extend to 1lakh rupees. This penalty to be levied by AO, TDS

10. CONSEQUANCES PROSECUTION: Sec. 276BB: If a person fails to pay TCS to the credit of the Government Account he shall be punishable with rigorous imprisonment for a term not less than 3 months but which may extend to seven years and with fine.

11. Thank you Tarun Dhinoja ITO, TDS-1, Rajkot