Tax Collection at Source
Tax Collection at Source (TCS) is an income tax that a seller collects on the sale of specific items from a buyer.
According to this concept, a seller is liable to collect tax from a buyer at a prescribed rate and deposit the same to the Government. Section 206C of the Income Tax Act specifies the items on which TCS is applicable, and also specifies the entities responsible for collecting TCS. A seller should collect TCS from a buyer when deducting the amount payable or receiving the amount payable from a buyer, whichever is earlier.
The India Localization SuiteTax Engine SuiteApp enables you to calculate TCS on items that are specified in the Section 206C of the Income Tax Act.
You can calculate TCS on the following type of transactions:
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Cash Sale
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Invoice
In addition, watch the following video for information about how to calculate TCS.
To start using the TCS feature, you must first complete the setup. For more information, see Setting up Tax Collection at Source.