Tax

TCS (Tax Collected at Source)

Tax collected by a seller from the buyer on certain transactions and deposited with the government.

Tax Collected at Source (TCS) requires sellers of specified goods, or operators of certain platforms, to collect an additional amount from the buyer and deposit it with the government as tax. The buyer can claim it against their own tax liability.

TCS exists under both income tax and GST in specific situations. As with TDS, accurate collection, deposit and reporting are required to stay compliant.

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