Tax Collected at Source in India

The vendor has to accumulate tax from the payer who has purchased the following items:

• Alcoholic liquor for human consumption
• Tendu leaves
• Timber obtained under a forest lease
• Timber obtained by any mode other than under a forest lease
• Any other forest produce not being timber or tendu leaves
• Scrap
• Parking lot
• Toll plaza
• Mining and quarrying

The rate of tax collected at source (TCS) may vary from 1 percent to 5 percent.

Deposit of TCS amount – Within seven days of the following month.

Issue of TCS certificate – Within one month of collection/debit (form 27D)

The rates of TCS for representative purpose (Financial Year 2010-2011, 2011-2012) are as follows: