What is TCS tax in GST?

Asked by: Dr. Orland Ruecker I  |  Last update: February 9, 2022
Score: 4.7/5 (17 votes)

The TCS or Tax Collected at Source is the tax that is collected from the buyer by the seller while the purchase of some specific goods category by the buyer. This TCS rate depends on the category of the items and this tax collected from the buyer needs to be deposited to the government by the seller.

How is TCS calculated in GST?

The rate is notified by the CBIC in Notification no. 52/2018 under CGST Act and 02/2018 under IGST Act. This means for an intra-state supply TCS at 1% will be collected, i.e 0.5 % under CGST and 0.5% under SGST. Similarly, for a transaction between the states, the TCS rate will be 1%, i.e under the IGST Act.

Can TCS be claimed in GST?

TDS and TCS credit received is a facility available after logging in to the GST portal. It can be filed by all the taxpayers who are making specified sales on the e-commerce platforms and/or entered into any kind of works contract with Government departments.

What is the TCS tax?

Tax Collected at Source (TCS) is a tax payable by a seller which he collects from the buyer at the time of sale of goods. Section 206 of the Income Tax Act mentions the list of goods on which the seller should collect tax from buyers.

Who is eligible for TCS tax?

Where transaction value exceeds Rs 50 lakh and buyer's turnover exceeds Rs 10 crores in the earlier year, TDS would apply over TCS. For sale transactions involving motor vehicle, tendu leaves, scrap, etc., TCS continues to apply.

TCS under GST I Concepts of TCS under GST in detail

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What is TCS tax refund?

If your client's refund is less than expected and you see a coinciding TCS TREAS 449 offset, this means that the tax payers refund has been reduced to repay a debt collected through the Treasury Offset Program. This program is designed to collect delinquent debts that are owed to states and federal agencies.

Is TCS refundable?

Yes, TCS can be claimed as refund in bank account.

How is TCS calculated on GST invoice?

Suppose a supplier chooses to charge TCS in the invoice,
  1. Value of goods = Rs. 1,00,00,000.
  2. GST at 18% = Rs. 18,00,000.
  3. Total = Rs. 1,18,00,000.
  4. TCS on the total value = Rs. 8,850.
  5. Total invoice value will be = Rs. 1,18,08,850.

What is TCS example?

Tax Collected at Source or TCS -Example

If a buyer is purchasing a car that costs Rs 10.01 lakhs then an amount of Rs 10,010 would be payable as TCS. This amount would need to be submitted to a particular branch of the bank which has been given permission by the government for receiving such payments.

How can I claim TCS in income tax?

Credit of TCS during the year has to be claimed in your ITR in a manner similar to that for TDS. To claim the TDS credit in ITR-1 available on the online platform, the details have to be filled in the 'Tax details' section of the form.

How can I add TCS to my bill?

How to create an invoice/purchase with TCS?
  1. Create a new tax account 'TCS', mention percentage as 1.18% instead of 1% because this 1% is computed on net value after CGST and SGST. ...
  2. Create a new Tax Group 'GST@18% + TCS' with SGST@9%, CGST@9% and TCS.
  3. Select this tax group while creating the invoice.

Who paid TCS?

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 is TCS deposit?

TCS full form is Tax Collected at Source. This TCS tax is payable by the seller who collects in turn from the lessee or buyer. The goods are as specified under section 206C of the Income Tax Act, 1961.

Can I claim TCS on car purchase?

Yes, TCS is to be collected, as the seller create a single invoice, it can be for two different parts of motor vehicle. So even though the individual value do not exceed Rs. Ten Lakhs, but if the invoice amount exceeds Rs. 10,00,000, then TCS is to be collected from customers.

What is the new rule of TCS?

WHAT IS THE NEW TDS RULE? The CBDT said the rate of TDS or TCS will be higher for people who have not filed income tax returns for two years. TDS or TCS will be charged at double the rate specified in the relevant provision of the Income Tax Act or 5 per cent.

Is TCS a IT company?

Tata Consultancy Services is an IT services, consulting and business solutions organization that delivers real results to global business, ensuring a level of certainty no other firm can match. TCS offers a consulting-led, integrated portfolio of IT, BPS, infrastructure, engineering and assurance services.

What is TDS & TCS in GST?

TDS and TCS under GST is an acronym for tax deduction at source and tax collection at source. These terms are even present under the Income Tax law.