Every seller who comes under the specified goods as prescribed by Income tax act collect TCS from the buyer at prescribed rates and deposit the same in the account of Income Tax Department. The TCS will be collected as mentioned in the following table. The table shows nature of payment, TCS rates and status of asseseee. The rate of TCS will be different according the status of assessee like individual assessee, company assessee, non resident assesee and resident assessee.
TCS Rates (F.Y. 2018-19 / A.Y.2019-20)
The following TCS rates are applicable to all Residents, Non-residents individuals/HUF/AOP/BOI/artificial judicial persons, non-residents co-operative society, firms, non-domestic company. The surcharge and education cess will be applicable to non residents on certain collections. The surcharge and education cess table is given below.
|Section||Nature of Goods||TCS Rates|
|206C||Alcoholic liquor for human consumption (other than Indian made foreign liquor)||1%|
|206C||Indian made foreign liquor||1%|
|206C||Timber obtained under a forest lease||2.5%|
|206C||Any other forest produce (not being timber/tendu leaves)||2.5%|
|206C||Minerals being coal or lignite or iron ore||1%|
|206C||Grant or Lease of Parking lot, toll plaza, mining and quarrying||2%|
|206C||Sale of motor vehicle of the value exceeding Rs. 10 Lacs||1%|
Surcharge and Health & Education Cess on TCS Rates
|Payee Status||Payment Exceeds||Surcharge Rates||Education Cess|
|Non Resident Individuals/HUF||Payment more than Rs. 50 lakh but not more than Rs. 1 crore||10%||4% w.e.f. A.y. 2019-20 on (TDS+Surcharge)|
|Payment more than Rs. 1 crore||15%||4% w.e.f. A.y. 2019-20 on (TDS+Surcharge)|
|Non Resident – Co-operative society/firm||Payment more than Rs.1 crore||12%||4% w.e.f. A.y. 2019-20 on (TDS+Surcharge)|
|Non-domestic companyNon-comestic company||Payment more than Rs. 1 crore but not more than Rs. 10 crore||2%||4% w.e.f. A.y. 2019-20 on (TDS+Surcharge)|
|Payment more than than Rs. 10 crore||5%||4% w.e.f. A.y. 2019-20 on (TDS+Surcharge)|
Notes for TCS Rates (F.Y. 2018-19 / A.Y.2019-20)
If PAN of the collectee is not intimated to the collector, tax will be collected by virtue of section 206CC either at twice the rate specified in the above table or at the 5 % whichever is higher. However, the provisions of section 206CC shall not apply in the case of non-resident collectee who does not have any permanent establishment in India.
Q.) Whether TCS can be collected on amount inclusive of GST?
As per section 206C (1) every person, being a seller shall, at the time of debiting of the amount payable by the buyer to the account of the buyer or at the time of receipt of such amount from the said buyer in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, collect from the buyer. Hence, amount debited to the account of buyer or payment shall be received by seller inclusive of VAT/ excise/GST. TCS to be collected on inclusive of GST.