TCS Rate chart: What are the applicable TCS rates for FY 2019-20 and 2020-21?

What is TCS?

According to the Income Tax Act, 1961, certain people/organizations need to gather a predetermined level of duty from their purchasers on specific transactions. Such duty is known as the Tax Collected at Source or TCS. Section 206C of the Income Tax Act, 1961 arrangements with the products on which expense is to be gathered at source.

Which sellers are required to Collect Tax at Source?

The following sellers are required to collect TCS:

1. Central Government
2. State Government
3. Local Authority
4. Statutory Corporation or Authority
5. Company registered under the Companies Act
6. Partnership firms
7. Co-operative Society
8. Any person or HUF who is subjected to an audit of accounts under the Income tax act for a particular financial year.

Which buyers are required to Pay Tax at Source?

The following buyers are required to pay TCS:

1. Public sector companies
2. Central Government
3. State Government
4. Embassy of High Commission
5. Consulate and other Trade Representation of a Foreign Nation
6. Clubs such as sports clubs and social clubs

TCS Rate Chart for FY 2019-20 and 2020-21:

A. CATEGORY - 1: SECTION 206C (1)

Each individual, being a merchant, will at the hour of charging the sum payable by the purchaser to the record of the purchaser or at the hour of receipt of such sum from the said purchaser, whichever is prior, gather from the purchaser of any merchandise of the nature indicated in segment (1) of the Table beneath, an entirety equivalent to the rate, determined in the comparing passage in segment (2) of the said Table, of such sum as personal duty:

B. CATEGORY - 2: SECTION 206C (1C)

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 license, contract or lease 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:

C. CATEGORY - 3: SECTION 206C (1F)

Each individual, being a vender, who gets any sum as thought for the offer of an engine vehicle of the worth surpassing Rs. 10,00,000, will, at the hour of receipt of such sum, gather from the purchaser, an aggregate equivalent to 1% of the deal thought as personal duty. From fourteenth May 2020 to 31st March 2021, this rate has been modified to 0.75%

D. CATEGORY - 4: SECTION 206C (1G)

Every person, being an authorized dealer, shall collect tax at the following rates from the remittance made out of India under the Liberalized Remittance Scheme of the RBI:

a. Section 206C (1G) (a): At the rate of 0.5%, where the amount being remitted is towards repayment of the 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. If the buyer does not furnish his PAN, the tax shall be collected at the rate of 10% in accordance with Section 206CC;

b. Section 206C (1G) (b): Where the amount is remitted for any other purpose, the tax shall be collected at the rate of 5% if the buyer has furnished his PAN, otherwise tax shall be collected at the rate of 10% in accordance with Section 206CC.

E. CATEGORY - 5: SECTION 206C (1G)

Every person, being a seller of an overseas tour programme package, shall collect tax at the rate of 5% if the buyer has furnished his PAN, otherwise, the tax shall be collected at the rate of 10% in accordance with Section 206CC.

F. CATEGORY - 6: SECTION 206C (1H)

Every person, being a seller who receives any amount as consideration for the sale of any goods, shall collect tax at the rate of 0.1% if the aggregate value of such sale in any previous year exceeds Rs. 50 lakhs. The rate shall be 0.075% till 31st March 2020.

Who is the person liable to furnish TCS Statements?

Every person responsible for the collection of tax at source shall be required to furnish quarterly statements in respect thereof.

What is the Form for filing TCS statements?

Quarterly TCS statements shall be furnished in Form No. 27EQ

What is the due date of filing of TCS Statements?

In which mode can users furnish TCS Statement Electronically?

The quarterly TCS statement shall be furnished electronically in any of the following modes:

a. Furnishing the statement electronically under digital signature; or

b. Furnishing the statement electronically along with the verification of the statement in Form 27A or verified through an electronic process.