Compliance & Taxation

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Compliance & Taxation

Compliance & Taxation

1. Preparation of Tax Audit
2. Preparing and filing of GSTR-9 & 9C
3. Preparing and filing of GSTR Return (GSTR-1 & 3B)
4. Preparing and filing of TDS/TCS Return
5. Preparing and filing of Income Tax Return…etc various things

Preparing and Filing of TDS /TCS Return  


TDS stands for Tax Deducted at Source. It is the tax amount that the government collects directly from the recipient’s income immediately when it is earned. The TDS is deducted at a certain percentage. As per the IT Act, an individual or any company can deduct this tax at the source of income if the payment for any goods or services crosses a certain amount.

The Government decides the TDS rates and thresholds for different types of goods and services for a particular financial year.

The services include the following:

1. Royalty
2. Consulting
3. Rent, etc.
4. Legal fees
5. Technical services

In a transaction where TDS is applicable, the person or firm receiving the payment is called the deductee. On the other hand, the individual or business deducting TDS from the payment is called a deductor.

What is Tax Collected at Source (TCS) ?

Tax collected at source (TCS) is the tax collected by the seller from the buyer on sale so that it can be deposited with the tax authorities. Section 206C of the Income-tax act governs the goods on which the seller has to collect tax from the buyers. Such persons must have the Tax Collection Account Number to be able to collect TCS.

During a transaction, if a buyer deducts TDS based on the provisions in the Income Tax Act, then, in this case, TCS is not applicable.

When will a higher TCS rate apply : –

Note that as per Section 206CCA, tax at a higher rate (other than rates in the above table) will be collected from the buyer if such buyer has not filed ITR for the last two financial years before the relevant financial year in which TCS had to be collected.

    The time limit to file ITR has expired. : –

    The total of TCS and TDS was more than Rs.50,000 in each of these two financial years. Such a higher TCS rate will be the highest of the two times the TCS rate as per TCS chart and 5%. In special cases given under Section 206C(IG), 5% TCS applies where the authorised dealer arranges remittance out of India of Rs.7 lakhs or more in a financial year from a buyer of foreign currency remitting under Liberalized Remittance Scheme (LRS), not being the overseas tour program package. If Aadhaar or PAN is unavailable, then TCS is 10%. Such TCS is collected while debiting the buyer’s account or on receipt of money.