TCS Return Filing

Do you need help filing your TCS return? We are here to assist you with any and all of your needs!

Be GST Compliant with us!

Get In Touch With Us To File Your Tax Return

What is TCS?

TCS or Tax Collected at Source is the income tax collected in India, that is payable by the seller who collects in turn from the buyer at the sale of specified goods. 

Table Of Contents


Income tax Act also provides a provision for some people to collect Tax at source at a specific rate for a few specified transactions. Most of these transactions are of a Trading or Business nature. TCS is the Tax collected by a specific seller from a buyer at the time of sale.

After depositing the collected Tax at source, the Collector (i.e. seller) must file a TCS return to the Government for every quarter of a financial year. TCS return is summary submitted by the person collecting the tax at source to the Income-tax Department containing the following details:

Classification of Buyer and Sellers for TCS provision:

Related read:Income Tax Returns (ITR) AY 2021-22: Which ITR Form Should You File?

Goods covered under TCS provision and their applicable rate

Types of Goods Rate
Liquor of alcoholic nature, made for human consumption 1%
Tendu leaves 5%
Timber wood other than forest leased 2.5%
Timber wood under a forest leased 2.5%
Scrap 1%
Minerals like lignite, coal and iron ore 1%
Purchase of Motor vehicle exceeding the value Rs. 10 Lakhs 1%
Parking lot/Toll Plaza/Mining and Quarrying 2%

Exemption from TCS

TCS on sale of goods

Types of Form related to TCS

Form Particular
Form 27C A declaration furnished by a buyer of the specified goods to the seller in case such goods are to be used for the purpose other than trading.
Form 27EQ Quarterly TCS return
Form 27D A certificate issued to the collectee by Collector as an acknowledgement for the Tax collected and deposited.
Form 27G A monthly statement of return to be furnished by the government collector of Tax for the Tax collected and deposited without a challan.

Deadlines for TCS return filings:

Quarter Due dates
Q1 – April to June 15th July
Q2 – July to September 15th Octobers
Q3 – October to December 15th January
Q4 – January to March 15th May

Penalty and Late fees attached TCS return

Section Minimum liability Maximum liability
Late filing of Form 27EQ (Interest u/s. 234E) Rs. 200 per day to date of filing the return. The maximum amount payable is equal to the amount of tax collected.
Non-filing or incorrect return filing (Penalty u/s. 271H) RS.10,000/- RS.1,00,000/-

How can we help you?

Still have doubts?

Speak to our experts who shall solve all your doubts.

Call us at 77380 66 334 or Mail us at


TCS will be applied to net taxable supplies as a percentage. Section 52 of the CGST Act deals with the TCS provision under GST.
TCS refers to the tax that a seller must pay and collect from the customer at the time of the sale. The items on which the seller is required to collect tax from the customers are governed by Section 206C of the Income Tax Act.
TDS is a tax that is taken from a company’s payment to an individual if the amount exceeds a specified threshold. TCS is a tax that sellers collect when they sell something to a buyer. TDS is deducted from payments such as salaries, rent, professional fees, brokerage commissions, and so on.
» Q1 – April to June: 15th July
» Q2 – July to September: 15th Octobers
» Q3 – October to December: 15th January
» Q4 – January to March: 15th May
» Buyer
  • Public sector companies
  • Central and State Government
  • Embassy of High commission
  • Clubs such as sports clubs or social clubs
  • Consulate and other Trade Representatives of a Foreign Nation
» Seller
  • Central and State Government
  • Statutory Corporation or Authority
  • Partnership firms
  • Company registered under Companies Act.
  • Local Authority
  • Co-operative Society
  • Any person/HUF who is subject to an audit of their accounts under the Income-tax act for a particular financial year.
27EQ Form. The information on Form 27EQ is everything about the tax that is collected at the source. This form must be filed every quarter, according to Section 206C of the Income Tax Act of 1961. Both corporate and government collectors and deductors must fill out the form.

What Our Clients Say About Us!

Let's Get You Started

Send Message
💬 Need help?
Hello, welcome to India Company Incorporation!
How may I assist you?