TCS stands for Tax collected at source. It is a term related to Governmental, Useful Terms and Definitions which we use in daily life but we do not know their full name meaning, Here’s a list of important abbreviations that you should know.
|TCS||Tax collected at source|
Full Form of TCS
The full form of TCS is the Tax collected at source. Withholding Tax (TCS) is the tax payable by the seller and collected by the buyer at the time of sale. Section 206C of the Income Tax Act regulates goods on which the seller must levy tax on the buyers.
Here you learn the full name and complete information of Tax collected at source, if you have questions and answers related to TCS, then tell us your thoughts in the comment, know the complete meaning of TCS in this article.
Process of payments and refunds
- All sums collected by the Government office should be deposited on the same collection day.
- The seller pays the TCS amount on Challan 281 within 7 days from the last day of the month in which the tax was collected.
- If the tax collector responsible for collecting the tax and depositing it with the government fails to collect the tax or, after collection, fails to pay the tax to the government in accordance with the above dates, he will be liable to pay interest of 1% per month or part of the month.
- Each tax collector must submit a quarterly TCS return, ie Form 27EQ, for the tax collected by him in the quarter. Late payment of TCS interest to the government must be paid prior to filing your return
Exemptions from TCS
- Withholding tax is exempt in the following cases:
- When eligible goods are used for personal consumption
- The buyer buys the goods for the purpose of fabricating, processing, or producing, and not for the purpose of trading the goods.