With Budget 2021, some amendments made with regard to TDS, however no amendment was made in TCS provision.
Now let’s take a look at the various categories of TCS to under the rate which are most useful: Other than Individual/ HUF all other types of entities have to collect TCS compulsorily unless otherwise specified.
Under Category 1 and category 3 TCS is to be collected by seller who is an individual or HUF only when the turnover in the previous year exceeds Rs. 1 crore in case of business or Rs. 50 lakh in case of profession.
Every person, being a seller, shall at the time of debiting 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, whichever is earlier, collect from the buyer of any goods of the nature specified in column (1) of the Table below, a sum equal to the percentage, specified in the corresponding entry in column (2) of the said Table, of such amount as income-tax:
|Nature of Goods||Rate (in %)|
|Alcoholic liquor for human consumption||1|
|Timber obtained under a forest lease||2.5|
|Timber obtained by any mode other than a forest lease||2.5|
|Any other forest produce (not being timber/tendu leaves)||2.5|
|Minerals, being coal or lignite or iron ore||1|
Every person, who grants a lease or a license or enters into a contract or otherwise transfers any right or interest either in whole or in part in any parking lot or toll plaza or mine or quarry, to another person, other than a public sector company (hereafter in this section referred to as “licensee or lessee” ) for the use of such parking lot or toll plaza or mine or quarry for the purpose of business shall, at the time of debiting the amount payable by the licensee or lessee to the account of the licensee or lessee or at the time of receipt of such amount from the licensee or lessee, whichever is earlier, collect from the licensee or lessee of any such licence, contract or lease of the nature specified in column (2) of the Table below, a sum equal to the percentage, specified in the corresponding entry in column (3) of the said Table, of such amount as income-tax:
|Nature of contract or licence or lease, etc.||Rate (in %)|
|Mining and Quarrying||2|
Every person, being a seller, who receives any amount as consideration for sale of a motor vehicle of the value exceeding Rs. 10,00,000, shall, at the time of receipt of such amount, collect from the buyer, a sum equal to 1% of the sale consideration as income-tax.
Every person, being a authorised dealer, shall collect tax at the following rates from the remittance made out of India under the Liberalized Remittance Scheme of the RBI.
a) At the rate of 0.5%, where the amount being remitted is towards repayment of loan, which is obtained from a banking company (including any bank or banking institution) or any other financial institution notified by the Central Government under section 80E, for the purpose of pursuing any education.
b) Where the amount is remitted for any other purpose, the tax shall be collected at the rate of 5%.
Provided that the authorised dealer shall not collect the sum, if the amount or aggregate of the amounts being remitted by a buyer is less than seven lakh rupees in a financial year and is for a purpose other than purchase of overseas tour program package
Every person, being a seller of an overseas tour programme package, shall collect tax at the rate of 5%.
Every person, being a seller whose aggregate turnover in previous year exceeds Rs. 10 crore and who receives any amount as consideration for sale of any goods other than the ones mentioned above, shall collect tax at the rate of 0.1% if the aggregate value of such sale in any previous year exceeds Rs. 50 lakh.
All TCS provisions are covered in one section i.e. section 206C.
To get TDS rate chart for FY 2021-22 CLICK HERE.