Oct 302012
Tax Collected at Source (TCS)
TCS is the tax collected by the Seller from the Buyer of goods at the time of debiting of amount payable by buyer to the account of the buyer or at the time of receipt of such amount from the said buyer by way of cash, cheque, demand draft or any other mode whichever is earlier for the sales of prescribed goods as per Section 206C (1) for business purposes and not for personal use.
The goods which are covered under TCS are listed along with their rates.

Nature of Goods


Alcoholic Liquor for human consumption


Tendu Leaves


Timber obtained under a forest lease


Timber obtained by any mode other than under a forest lease


Any other forest produce not
being Timber or Tendu Leaves




Following persons are covered as mentioned,
  1. State & Central Government,
  2. Local Authority or Corporation,
  3. Company, Firm or Society
  4. Individual or Hindu Undivided Family (HUF),  if covered under Sec 44AB (Mandatory Audit)


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 above table or the right to receive any such goods.

but does not include,

  1. A Public Sector Company
  2. The Central Government
  3. A State Government
  4. A Embassy, a High Commission, Legation, Commission, Consulate and the Trade representation, of a Foreign State and a club; or
  5. A Buyer in the retail sale of such goods purchased by him for personal consumption

Tax Collected at Lower Rate

  1. A Buyer can apply to his Assessing Officer for Tax Collection at lower rate.
  2. On receiving such application by the Buyer, Assessing Office , if satisfied can give him a certificate for collection of tax at lower rate. This rate is a for specific seller, whose name is mentioned in the certificate & not applicable to any seller for the purchase of goods specified above.


TCS is exempted in following scenarios,

  1. If goods are bought for personal consumption.
  2. The buyer who buys specified goods for manufacturing, processing or production and not for the purpose of trading, no tax would be collected, in such case the buyer submits declaration in Form 27C  to Seller

Deposits & Certificates

The Seller deposits the TCS Amount in Challan 281 within 7 days from the last day of the month in which tax is collected. TCS Certificate in Form 27D is issued to Buyer. It should contain the name of the Seller & Buyer, TAN, and PAN, what sum of tax collected by seller, date of collection, the rate of tax applied on it & other such particulars as may be prescribed.

Quarterly Return

The Seller who has collected and deposited the TCS Amount, Quarterly Return has to be filed in Form 27EQ in Electronic Format in the NSDL format.

Due date for Filing TCS Return


                  Due Date

First Quarter

On or before 15th July

Second Quarter

On or before 15th October

Third Quarter

On or before 15th January

Fourth Quarter

On or before  30th April