Why tax collected at source

Instead, they are to be used in manufacturing, production, and processing. However, the buyer shall furnish one copy of such declaration to the Chief Commissioner of Income Tax or the Commissioner of Income Tax before the 7th of the next month. The deductor of TCS, i. Note: The seller must also provide the buyer with a certificate in form 27D. We hope this helped you understand everything about TCS. Save my name, email, and website in this browser for the next time I comment.

Table of Contents. Local Authority 4. Statutory Corporation or Authority 5. Company registered under Companies Act 6. Partnership firms 7. Co-operative Society 8. TCS is not necessary for the following buyers: a. Public Sector Companies b. Central Government c. State Government d. Embassy of High commission e.

Clubs such as Sports clubs and Social Clubs g. Local authority for the purpose of purchase of vehicle 8. Goods and transactions covered under TCS provisions and rates applicable to them The rate of TCS is different for goods specified under different categories : Nature of Goods Rate applicable from TCS Exemptions Tax collection at source is exempt in the following cases: a.

When the eligible goods are used for personal consumption b. Source- incometaxindia. Tags: tax collection , TCS. Disallowing finance charges, which were allowed in earlier years, needs re-consideration — Matter remanded back to AO. Tax Audit Series-2 — Business Vs.

Whether depreciation on acquired goodwill allowable under Income Tax Act, Deduction allowable on loss suffered by assessee on Foreign Exchange Fluctuation Loss. August 7, at am. V K Mahendra says:. Local Authority 5. Company 6. Co-operative Society 7. Partnership Firms 8. Any Individual or Hindu Undivided Family HUF defined under the Section 44AB, who has gross receipts or total sales that exceed the specified financial restricts based on the previous year.

A buyer is categorsied as any individual, who receives the actual goods or the rights of receiving goods at a tender, auction, sale, or other modes. All individuals except for the below — mentioned list of individuals and organizations are classified as buyers for TCS —. Public Sector Entities 2. Central Government 3. State Government 4.

Consulates and any other Trade Representations of a Foreign Nation 5. High Commission Embassies 6.