- What are TCS charges?
- What happens if TCS is not collected?
- On which item TCS is applicable?
- Is TCS deducted on GST amount?
- How is TCS calculated under GST?
- How do you calculate TCS?
- On what amount is TCS collected?
- How can I pass TCS entries?
- How can I get TCS refund?
- Is TCS applicable on scrap sale?
- Is TCS inclusive of GST?
- Can TCS be claimed as refund?
What are TCS charges?
Tax collected at source (TCS) is the tax payable by a seller which he collects from the buyer at the time of sale.
Section 206C of the Income-tax act governs the goods on which the seller has to collect tax from the purchasers..
What happens if TCS is not collected?
Consequences if default is made in payment of TCS c) Prosecution: If a person fails to pay to the credit of the Central Government the tax collected by him he shall be punishable with rigorous imprisonment for a term which shall not be less than three months but which may extend to seven years and with fine.
On which item TCS is applicable?
In a statement, the Central Board of Direct Taxes (CBDT) clarified that TCS shall be applicable only on the amount received on or after October 1, 2020 and a seller would be required to collect TCS only if his turnover exceeds Rs 10 crore in the last financial year.
Is TCS deducted on GST amount?
Provided further that the provisions of this sub-section shall not apply, if the buyer is liable to deduct tax at source under any other provision of this Act on the goods purchased by him from the seller and has deducted such amount….TCS on Sales of Goods w.e.f. 1st October 2020.PAN / AADHAAR furnishedUp to 31st March 2021From 1st April 2021NO0.75%1%1 more row•Sep 29, 2020
How is TCS calculated under GST?
TCS to be collected on aggregate value taxable value supplies (Goods + Services) = Rs. … TCS rate in GST = 1% (CGST 0.5% and SGST 0.5%)TCS to be computed on the net value of taxable supplies (see the formulae above)Net value in the given case would be Rs.More items…•
How do you calculate TCS?
In case of Inter-State Sales, IGST will be calculated with TCS as per the Income Tax Act, 1961….Create a sales invoice.ComponentAmountGST Base Amount10,000CGST900SGST900TCS100Oct 1, 2020
On what amount is TCS collected?
Rate of collecting TCS The tax shall be collected by the seller of goods at the rate of 0.1 per cent of the sale consideration exceeding Rs 50 lakh if the buyer has furnished his PAN or Aadhaar. If buyer does not submit PAN or Aadhaar, then, the tax shall be collected at the rate of 1 per cent.
How can I pass TCS entries?
Open a Separate Ledger under the Group “Current Liabilities” named “TCS Payable on Sales of Goods” for reconciliation of TCS collected and to be paid to government. 8. Deposit TCS collected during the month to Government on or before 7th of the next month to avoid levying of interest.
How can I get TCS refund?
Steps Involved in Filing TDS and TCS Credit Received on GST PortalStep 1: Login to GST portal.Step 2: Go to ‘Services’ > ‘Returns’ > ‘Returns Dashboard’Step 3: Select the return period of GSTR-3B being filed and proceed to ‘TDS/TCS credit received’ tile.More items…•
Is TCS applicable on scrap sale?
Therefore responsibility to collect TCS comes when Scrap is sold and such Scrap must be come out from manufacture or mechanical work of material….Every Scrap sale not liable to Tax Collection at Source (TCS)Type of WasteApplicability of TCSSale of broken pipe/iron itemsit is not a scrap for applicability of TCS except sold by Factory.5 more rows•Mar 21, 2020
Is TCS inclusive of GST?
Whether TCS to be collected on the amount of sale including GST? Ans. … Further, the FAQ issued by the Income Tax Department on TCS provides that the “amount debited to the account of buyer or payment shall be received by seller inclusive of VAT /Excise /GST. As such, TCS to be collected on inclusive of GST.”
Can TCS be claimed as refund?
TCS (tax collected at source) could have been paid by you if the motor vehicle you purchased was worth more than Rs 10 lakh. Credit of TCS during the year has to be claimed in your ITR in a manner similar to that for TDS. … However, one must check that all the TDS credits have been correctly pre-filled in the ITR form.