Every person, being a seller, shall collect tax at source(TCS) from the buyer of goods.


Following persons are covered under the scope of the seller for TCS purpose:

  • The Central And State Government
  • Local authority
  • Statutory corporation or Authority
  • Company
  • Firm
  • Co-operative society
  • Individual or Hindu undivided family(HUF) if covered under section 44AB (mandatory Audit)

  • Buyer Means a person who obtains in any sale, by way of auction, tender or any other mode, specified goods ,or right to receive any such goods
  • but does not include
    1. Public sector company,
    2. Central/state Government,
    3. Embassy, a high commission, legislation, consulate and the trade representation of a foreign state
    4. A club
    5. A buyer in the retail sale of specified goods purchased for personal consumption. (so, goods purchased by consumers are not covered under TCS.)

Specified Goods:
  1. Alcoholic Liquor for human consumption
  2. Tendu Leaves
  3. Timber obtained under a forest lease
  4. Timber obtained by any other mode
  5. Any other forest produce not being a Timber or tendu leave: forest produce means grown spontaneously, though at latter stage human efforts are required /applied in order to extract the resultant product. (TCS is applicable on Forest produce and not on agriculture produce.)
  6. Scrap: waste and scrap from the manufacture or mechanical working of material which is definitely not usable as such because of breakage, cutting up, wear and other reasons.

Time Limit For Collection of Tax:
Tax(TCS) has to be collected:
  • at the time of debiting of the amount payable to buyer or
  • at the time of receipt of payment,
which ever is EARLIER.

Time Limit For Deposit of Tax:

TCS shall be deposited within one week from the last day of the month in which collection is made.

To deposit TCS, challan number 281 is to filled.(the same challan is used for TDS).

 Time Limit For Filing of TCS return

 QuarterDate of ending of the quarter of the financial year Due date of filing of TCS return
(Both for Government and other deductors w.e.f. 01/06/2016)
 1st 30th June 31st July of the financial year
2nd  30th September 31st October of the financial year
3rd  31st December 31st January of the financial year
4th  31st March 31st May of the financial year immediately following the financial year in which collection is made

Time Limit for Issue of TCS Certificate

The certificate shall be issued to the buyer in Form 27D with in one month from the end of the month during which amount is collected from the buyer. (Form 27D must be downloaded from TRACES)

Consolidated form 27D may be issued for 6 months for transaction up to 30th September by 31st October and up to 31st March by 30th April on request from the buyer.