All you need to know about TCS return, buyers, sellers, and tax collection
Tax Collected at Source (TCS) is a technique used by the government to collect tax at the source of a transaction. A specific percentage of tax is collected at the source from a buyer and the seller will pay it to the government. Most transactions are related to businesses in this aspect. As per Section 206C of the Income Tax Act 1961, the buyer will have to pay a certain percentage of tax based on the goods, services, and /or commodities he is buying. The seller is bound to collect this tax from the buyer. All government and corporate collectors and deductors are liable to file TCS Return and pay the government the rightful sum as per the act. This filing can be done either physically or electronically using the online domain of the same public institution. Classification of buyers and sellers based on TCS As per the clauses mentioned in this act, the buyers and sellers are defined accordingly. 1. Sellers Sellers are the goods and service providers who ...