As per section 206 of Income Tax Act, Tax Collected at Source (TCS) is a tax which is payable by the seller which he collects from the buyer at the time of sale of goods. Under section 206 describes all the list of goods which is attracted TCS and seller shall be collect the TCS on such goods at the time of sale.

Seller For Tax Collected at Source (TCS) may any individual or organization authorized under Tax Collected at Source. The following are the list of seller for Tax Collected at Source (TCS)

Company
Statutory Corporation or Authority
Local Authority
State Government
Central Government
Statutory Corporation or Authority
Co-operative Society
Any Individual or Hindu Undivided Family (HUF) defined under the Section 44AB, who has gross receipts or total sales that exceed the specified financial restricts based on the previous year
Partnership Firms

A buyer is categorsied as any individual, who receives the actual goods or the rights of receiving goods at a tender, auction, sale, or other modes. All individuals (except for the below – mentioned list of individuals and organizations) are classified as buyers for TCS –

Public Sector Entities
Central Government
State Government
Consulates and any other Trade Representations of a Foreign Nation
High Commission Embassies
Clubs such as social clubs or sports clubs

The following goods and/or transactions are considered for Tax Collected at Source –

Liquors of alcoholic nature including IMFL (Indian Made Foreign Liquor) that are deemed for human consumption
Timber wood obtained from a leased forest area
Tendu Leaves
Timber wood obtained from any mode other than leased
Forest produces (other than timber and Tendu leaves)
Scrap
Parking lot tickets, Toll Plaza, Mining and Quarrying
Minerals that include iron ore, lignite or coal
Bullion having valuation over Rs. 2 lakh
Jewellery whose value exceeds Rs. Five lakhs
Motor vehicle purchases over Rs. 10 Lakhs

The rates of TCS for various goods and transactions are listed in the table below