TCS – Tax Collection at Source
Tax Collection at Source is a type of tax which has to be collected from the buyer on sale of certain items. The tax has to be collected by the seller at the time receipt of amount from the buyer or at the time of debiting the account of the buyer, whichever is earlier. The tax amount has to be submitted to the IT Department within seven days of the following month.
The list of items on which TCS is collected include: Alcoholic liquor for human consumption, Timber obtained under a forest lease, Tendu leaves, Scrap, Toll plaza, Parking lot etc.