Tax Collected at Source (TCS) is a tax collected from the buyer and paid to the government by the seller. According to Section 206C of the Income Tax Act 1961, if the seller has collected the tax then they are required to file a TCS return in Form 27EQ. The form has to be submitted by both corporate and government collectors and deductors.
What is Form 27EQ?
Form 27EQ is a TCS Return/ Statement holding information on Tax Collected at Source by the seller while receiving payments from the buyer on specified goods. Basically, details of Tax Collected and paid to the central government are covered in Form 27EQ. It is required to be submitted quarterly on or before the due date.
List of specified goods on which TCS is collected
Following are the goods on which tax is collected at source:
- 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
- Minerals, being coal or lignite, or iron ore
- On the sale of goods if the consideration exceeds INR 50,00,000
- Sale of Cars (New and Old) when the sale is above INR 10,00,000
What are the details required to file Form 27EQ?
The following details are required to file Form 27EQ:
| Entity | Details |
|---|---|
| Collector / Seller | TAN, PAN, Name, Address, and Contact Details. |
| Responsible Person | Name, PAN, Address, and Contact Details |
| Challan | Challan serial number, BSR Code, TDS, Surcharge, and Education Cess |
| Deduction | Name of Buyer, PAN, Total value of purchase, TCS amount collected and deposited. |
What is the due date to file Form 27EQ?
The due date for filing Form 27EQ for every quarter is as follows:
| Quarter | Period | Due date |
|---|---|---|
| Q1 | 1st April – 30th June | On or before 15th July |
| Q2 | 1st July – 30th September | On or before 15th October |
| Q3 | 1st October – 31st December | On or before 15th January |
| Q4 | 1st January – 31st March | On or before 15th May |
TCS Certificate
When the tax collector files their quarterly return in 27EQ they are required to provide a TCS certificate to the buyer of the goods. The certificate should be issued within 15 days from the date of filing the TCS return.
Preparation of return Form 27EQ
TCS returns can be prepared using the TDS/TCS Return Preparation Utility( RPU) that can be downloaded from the TIN NSDL website.
FAQs
Yes, It is mandatory for the seller to have a TAN then only they are eligible to file their TCS return.
Form 27Q is a TDS return and it is to be filled by the deductor if any payment is made to Non-resident. Whereas Form 27EQ is a TCS return and it is to be filled only if any tax is collected by the seller from the buyer on specific goods.
Form 27A is automatically created upon the successful generation of the FVU file of TDS/TCS Return. Form 27A contains particulars of Name, TAN, the amount paid, and tax collected at source.
Yes, the amount received by the seller shall be inclusive of the GST amount. Hence, the seller should collect the TCS inclusive of GST.
If the seller has not filled the TCS return within the due date then a fee of INR 200 per day must be paid, during which the failure continues.
Hey @HarshitShah
Yes, in case you have not deposited TDS by the due date, the following penalties might be applicable:
Interest (if you do not deposit the TDS amount in time)
Late filing fee (if you do not file by the deadline)
Penalty (if TDS is not filed within one year of the due date)
Hope this helps!
Hey @HarishMehta
Form 24, 27 and 27E are forms to file TDS/TCS returns:
Form 24 is to file TDS return detailing Salary Payments
Form 27 is to file TDS return detailing Foreign or NRI payment other than salary
Form 27E is to file TCS returns
Hope this helps!
Hi @KrishnaAgarwal
Hey @taxpayer, you can file your Income-tax return can claim the tax refund for any excess tax credits available to you.
If your total taxable income is below the basic exemption limit then you won’t have any tax payable.
You can check the total tax credits available to you in your Form 26AS
@Muskan_Balar @Bharti_Vasvani can you help here?
Hello @abhaykk90,
As per section 194IB of the income tax act, if you’re liable to deduct TDS on rent paid, the rate applicable will be 5%.
Hope this helps!
Hi @t_bovee,
Here are answers to your various questions
However, you can file TDS return 26QC within 30 days from the end of the financial year.
Here’s a read on What is Form 26QC? Who needs to file form 26QC? - Learn by Quicko for your reference. Hope this helps.
Hi @t_bovee
It would not be possible for us to tell you the mismatch of amounts, without seeing the documents.
However, for expert assistance with your taxes, here’s how you can Book a MEET.
Hi @paliya_hitesh
Here’s read on Form 26Q: TDS on other than Salary - Learn by Quicko for your refrence.
Thank you for the reference @Shrutika_Shah