Tax Collected at Source (TCS) is an income tax which the seller of a specific good owes to the government. Under this tax, the seller is required to collect tax from the buyer and deposit it in a government account. Section 206C of the Income Tax Act specifies the products that fall under TCS. If the seller sells a particular item, such as jewellery, the seller is liable to collect TCS from the buyer and deposit it in a government account.
In order to collect TCS, the buyer must apply for a TAN No. This TAN number must be quoted on all TCS Return Forms and at the time of depositing the TCS. The due date for depositing TCS and TDS is the same. In addition, the buyer must furnish a TCS Return, specifying the nature of the goods sold and the TCS rate. Incorrect TCS returns are punishable by a Section 271H penalty.
TCS certificates must be issued to buyers within a week of the month in which the sale took place. The certificate should include the necessary details that are contained in Form 27D. If the seller does not collect TCS from the buyer, he must submit a TCS certificate to the government in Form 27D. This certificate is valid for one week and must be presented within a week of the month’s end. Alternatively, the buyer can file a TCS return using RPU or an online platform.
TCS is a compulsory tax in the United Kingdom. The buyer is the person who obtains the goods. This can be done in any manner. There are exemptions for a few types of buyers under TCS. A resident buyer needs to make a written declaration in duplicate. The buyer is also liable to pay the tax if the transaction takes place in another country. Therefore, it is important to file a TCS return to ensure compliance with the tax rules.
The seller pays the government tax before delivering the goods to the buyer. It applies to goods that were manufactured or produced. It is important to note that TCS is different for each category. For instance, a scrap item purchased from Mr. X costs Rs. 2000. Mr. Y pays him Rs. 2020, and he pays him Rs. 20 in TCS. Mr. Y must deposit the money he receives with the Government.
Upon collection of tax at source, the seller must furnish a TCS certificate to the buyer. This certificate must be given to the buyer within one month of the last day of the month in which the tax was collected. In addition to the certificate, the seller must pay interest on any delay in payment. In addition, every person who collects tax at source must file a TCS return. Failure to do so incurs a penalty of Rs. 100 per day, which cannot exceed the amount of tax deducted by the seller.
The buyer can also apply for a lower TCS rate by submitting Form 13. Usually, the Assessing Officer will approve the buyer’s gross income and issue a certificate stating a lower rate. In some cases, the buyer can be granted a certificate stating the lower rate based on the new certificate. The agency responsible for TCS issues duplicate certificates for this purpose. So, what are the requirements for a duplicate certificate?