TCS commonly known as Tax collection at source covered by Section 206(C) of Income Tax Act’1961. TCS is to be collected at the rate of 1% each ‘on alcoholic liquor for human consumption’, ‘on scrap’, ‘on minerals being coal or iron ore’, at the rate of 5% on ‘Tendu leaves’ and at the rate of 2.5% each on ‘timber’, ‘on any other forest produce’ respectively at the time of receiving the payment or debiting the buyer account, whichever is earlier. TCS provisions were also extended to every person who grants lease or license to another person other than public sector company for parking lot, toll plaza, mining and quarrying then he has to also collect the TCS at the rate 2% from the licensee at the time of receiving the payment or debiting the amount, whichever is earlier.
The above-mentioned provision has been kept as it is, and no changes has been made therein. Additionally, in budget 2020, for widening the scope of section 206C following transactions has also been brought under the ambit of TCS provisions:
Read more on: https://taxguru.in/income-tax/tcs-provision-income-tax-applicable-1st-apr-2020.html
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