Provisions under section 206C(1):
Who shall Collect Tax ?
Every person, being a ‘Seller’, shall collect from the ‘Buyer’ a tax , at a specified rate on the ‘purchase value’ of such specified goods.
Point of time for Collection Tax:
Tax has to be collected by the seller
- At the time of debiting of the amount payable by the buyer to the account of the buyer (Or)
- At the time or receipt of such amount from the buyer in cash or by issue of cheque or draft, or by any other mode
Rates of TCS u/s 206C(1):
| Serial Number | Nature Goods | Rate of TCS |
|---|---|---|
| 1 | Alcoholic Liquor for human consumption | 1% |
| 2 | Tendu Leaves | 5% |
| 3 | Timber obtained under a forest lease | 2.5% |
| 4 | Timber obtained by any mode other than under a forest lease | 2.5% |
| 5 | Any other forest produce not being timber or tendu leaves | 2.5% |
| 6 | Scrap | 1% |
| 7 | Minerals, being coal or lignite or iron ore | 1% |
Due date for Deposit of TCS to Government:
| TCS Collected Month | TCS Due date |
|---|---|
| During the April to February months | 7th of Next Month |
| March Month | 7th April of Next Financial Year |
Due Date for Filing TCS Returns:
| Quarter period | TCS Return Due Date |
|---|---|
| April-June | 15th July |
| July-September | 15th October |
| October-December | 15th January |
| January-March | 15th May |
Important Definitions under This Section:
Seller
Seller means-
- the Central Government,
- a State Government
- any local authority
- corporation
- authority established by or under a Central, State or Provincial Act f. any company
- firm h. Co – operative society.
- Individual or a HUF whose turnover in just preceding FY exceeds Rs. 1 Crore or Rs. 50 Lakhs, as the case may be.
Buyer
Buyer means a person who obtains in any sale, by way of auction, tender or any other mode, goods of the nature specified in the Table in section 206C(1) or the right to receive any such goods. However, buyer does not include the following:
- a public sector company, the Central Government, a State Government, and an Embassy, a High Commission, Legation, Commission, Consulate and the trade representation, of a foreign State and a club.
- a buyer in the retail sale of such goods purchased by him for personal consumption.
