Rates for Tax Collection at Source (TCS) (FY 2017-18 & AY 2018-19)
Following given are the rates at which tax is to be collected at source during financial year 2017-18 (AY 2018-19).
| Section | Receipts Type | Basic Rate of TCS (excluding Surcharge, EC & SHEC) |
|---|---|---|
| 206C | Sale of Alcoholic liquor for human consumption | 1% |
| 206C | Sale of Tendu Leaves | 5% |
| 206C | Sale of timber obtained under forest lease or otherwise | 2.5% |
| 206C | Sale of any other forest produce not being timber or tendu leaves | 2.5% |
| 206C | Sale of Scrap | 1% |
| 206C | Sale of minerals being coal or lignite or iron ore | 1% |
| 206C | Sale of motor vehicle of value exceeding Rs. 10 Lakhs. | 1% |
| 206C | Grant of lease/license for parking pot, toll plaza, mining and quarrying | 2% |
Note:
(1) Surcharge on TCS:-
- Surcharge is not to be added in rate of TCS in case of resident individual/ HUF /Firm/LLP/ AOP / BOI/Domestic Company.
- In case of Non-resident & Foreign company, Surcharge is to be added in the rates of TCS at the following rates.
Non Residents other than company (if income exceeds Rs. 50 Lakh but not exceeds Rs. 1 Crore) 10% Non Residents other than company (if income exceeds Rs. 1 Crore) 15% Non Resident companies if income is between Rs. 1 Crore and 10 Crore 2% Non Resident companies if income is greater than Rs. 10 Crore 5% Surcharge on Co-operative Society & Firms in case of Non-Residents (if income exceeds Rs. 1 crore) 12%
(2) Education Cess & SHEC on TDS:-
- EC & SHEC is not to be added in rates of TCS in case of resident Individual/HUF/Firm/ AOP/ BOI/ Domestic Company.
- Education Cess @ 2% & SHEC @ 1% is deductible at source in case of non-residents and foreign company.
(3) Finance Act 2017, has removed the requirement of collection of tax at source in case of receipt of cash for sale of more than Rs.5 Lakhs in case of Jewellery and Rs. 2 Lakhs in case of Bullion, other goods.
(4)As per Section 206C(7), If the person responsible for collecting tax does not collect the tax or after collecting the tax fails to pay it as required, he shall be liable to pay simple interest at the rate of One per cent per month or part thereof on the amount of such tax from the date on which such tax was collectible to the date on which the tax was actually paid and such interest shall be paid before furnishing the quarterly statement for each quarter.