Tax Collected at Source (TCS)
Tax Collected at Source (TCS) is a tax mechanism under the Income Tax Act, 1961, where the seller collects tax from the buyer at the time of sale of specified goods or services and deposits it with the Government of India. It ensures transparency, reduces tax evasion, and maintains accountability in business transactions.
TCS provisions are highly relevant for traders, e-commerce operators, businesses, and organizations engaged in the sale of specified goods like scrap, tendu leaves, liquor, minerals, or even certain services. In recent years, the scope of TCS has expanded to cover foreign remittances, overseas tour packages, and sale of goods exceeding certain limits.
Why TCS Compliance is Important?
- Mandatory for businesses dealing in specified goods/services.
- Non-compliance can lead to interest, penalties, and legal consequences.
- Enhances credibility and transparency in business.
- Ensures smoother audits and government checks.
Important Due Dates for TCS
Deposit of TCS: 7th of the following month.
Quarterly TCS Returns (Form 27EQ):
- April–June: 15th July
- July–September: 15th October
- October–December: 15th January
- January–March: 15th May
Our TCS Services Include:
TCS Registration Assistance
- Guidance and support for obtaining a Tax Collection Account Number (TAN).
- Advisory on transactions where TCS applies.
- Assistance with registration procedures and compliance setup.
Calculation & Collection Support
- Accurate calculation of TCS based on applicable rates and thresholds.
- Proper documentation of sales invoices with TCS components.
- Ensuring compliance with buyer communication and invoicing norms.
TCS Deposit & Return Filing
- Timely deposit of collected TCS to the government using Challan 281.
- Filing of quarterly TCS returns (Form 27EQ).
- Generation and issuance of TCS Certificates (Form 27D) to buyers.
Representation & Advisory
- Handling queries and notices from the Income Tax Department.
- Representation in case of mismatches, defaults, or disputes.
- Continuous advisory support to manage changing TCS laws.