Tax Collected at Source in India

Posted by Reading Time: < 1 minute

Dec. 8 – The vendor has to accumulate tax from the payer who has purchased the following items:

  • Alcoholic liquor for human consumption
  • Tendu leaves
  • Timber obtained under a forest lease
  • Timber obtained by any mode other than under a forest lease
  • Any other forest produce not being timber or tendu leaves
  • Scrap
  • Parking lot
  • Toll plaza
  • Mining and quarrying

The rate of tax collected at source (TCS) may vary from 1 percent to 5 percent.

Deposit of TCS amount – Within seven days of the following month.

Issue of TCS certificate – Within one month of collection/debit (form 27D)

The rates of TCS for representative purpose (Financial Year 2010-2011, 2011-2012) are as follows:

Dezan Shira & Associates is a boutique professional services firm providing foreign direct investment business advisory, tax, accounting, payroll and due diligence services for multinational clients in India. For more information, please contact india@dezshira.com, visit www.dezshira.com, or download the firm’s brochure here.