Tax collected at source (TCS) is collected by the seller from the buyer at the time of sale. Form 27EQ is used to report TCS details under Section 206C of the Income Tax Act, 1961, and must be filed quarterly by corporate and government collectors.

Certain goods, when used for manufacturing, processing, or production, are exempt from TCS. However, if these goods are used for trading purposes, TCS applies. Rates vary for different categories:

• Liquor for human consumption: 1.00%
• Timber wood under forest lease: 2.50%
• Tendu leaves: 5.00%
• Timber wood other than under forest lease: 2.50%
• Other forest produce: 2.50%
• Scrap: 1.00%
• Minerals like lignite, coal, and iron ore: 1.00%
• Bullion exceeding Rs. 2 lakhs or jewellery exceeding Rs. 5 lakhs: 1.00%
• Motor vehicles exceeding Rs. 10 lakhs: 1.00%
• Parking lots, toll plazas, mining, and quarrying: 2.00%

• Determine applicability
• Obtain TAN
• Register for TCS
• Document submission
• Verification and Approval
• Compliance and Reporting

• Collector/Seller
  1. TAN
  2. PAN
  3. Name
  4. Address and Contact details
• Responsible person
  1. Name
  2. PAN
  3. Address and Contact details
• Challan
  1. Challan Serial Number
  2. BSR Code
  3. TDS
  4. Surcharge and Education cess
• Deduction
  1. Name of Buyer
  2. PAN
  3. Total Value of purchase
  4. TCS amount collected and deposited
•