TCS or Tax Collected at Spruce and TDS or Tax Deducted at Source are both indirect types of taxes levied by the government. To know the TDS and TCS difference, you will first need to know what they mean in the simplest way possible. TDS is the tax where revenue is collected directly at the point of the recipient’s income. TCS on the other hand is the tax imposed on goods by the sellers upon the buyer at the time of sale. I hope this provides you with a basic understanding of what is the difference between TDS and TCS.
Is TDS and TCS applicable on the same transaction?If a buyer deducts TDS then the seller shall not collect any TCS on the same good or service. But if the buyer is not liable for the TDS deduction, then the seller needs to collect TCS.
What is the difference between TDS and TCS in GST?There are several differences between TDS and TCS in GST like-
| Aspect | TDS | TCS |
Applicability |
TDS is applicable when a person making specified payments, such as rent, professional fees, or commission, exceeds a certain threshold. The deductor deducts tax at a prescribed rate and deposits it with the government |
TCS is applicable when a seller collects tax from the buyer at the time of making a sale. It is primarily applicable to the e-commerce sector where the operator of an electronic platform collects tax on behalf of the seller. |
Collection and Deposits |
The person responsible for deducting tax (the deductor) deducts the tax amount and deposits it with the government. The deductee (recipient of payment) receives the payment net of tax. |
The person making the sale (seller) collects the tax from the buyer and deposits it with the government. The buyer pays the total amount, including the tax collected. |
Nature of Tax |
Tax Deducted at Source is a mechanism to deduct tax from certain types of payments at the time of making the payment. It is a form of advance tax collected on behalf of the recipient |
Tax Collected at Source is a mechanism to collect tax at the time of making a sale. It is collected by the seller from the buyer and remitted to the government |
This should be enough to help you understand the TDS and TCS difference.
Invest safely in real estate properties. Seek NoBroker’s legal team’s advice
Read More:How to claim TCS refund ?
How to claim TDS on sale of property?
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TCS or Tax Collected at Spruce and TDS or Tax Deducted at Source are both indirect types of taxes levied by the government. To know the TDS and TCS difference, you will first need to know what they mean in the simplest way possible. TDS is the tax where revenue is collected directly at the point of the recipient’s income. TCS on the other hand is the tax imposed on goods by the sellers upon the buyer at the time of sale. I hope this provides you with a basic understanding of what is the difference between TDS and TCS.
Is TDS and TCS applicable on the same transaction?If a buyer deducts TDS then the seller shall not collect any TCS on the same good or service. But if the buyer is not liable for the TDS deduction, then the seller needs to collect TCS.
What is the difference between TDS and TCS in GST?There are several differences between TDS and TCS in GST like-
| Aspect | TDS | TCS |
Applicability |
TDS is applicable when a person making specified payments, such as rent, professional fees, or commission, exceeds a certain threshold. The deductor deducts tax at a prescribed rate and deposits it with the government |
TCS is applicable when a seller collects tax from the buyer at the time of making a sale. It is primarily applicable to the e-commerce sector where the operator of an electronic platform collects tax on behalf of the seller. |
Collection and Deposits |
The person responsible for deducting tax (the deductor) deducts the tax amount and deposits it with the government. The deductee (recipient of payment) receives the payment net of tax. |
The person making the sale (seller) collects the tax from the buyer and deposits it with the government. The buyer pays the total amount, including the tax collected. |
Nature of Tax |
Tax Deducted at Source is a mechanism to deduct tax from certain types of payments at the time of making the payment. It is a form of advance tax collected on behalf of the recipient |
Tax Collected at Source is a mechanism to collect tax at the time of making a sale. It is collected by the seller from the buyer and remitted to the government |
This should be enough to help you understand the TDS and TCS difference.
Invest safely in real estate properties. Seek NoBroker’s legal team’s advice
Read More:How to claim TCS refund ?
How to claim TDS on sale of property?
What is the Difference between TDS and TCS?
Krittika Dhar
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2 Year
2023-05-30T12:32:13+00:00 2023-05-30T13:06:46+00:00Comment
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