Overview of TCS

Tax collected at source (TCS) is a federal tax that customers are charged on goods. Suppliers that sell the goods are responsible for charging TCS to their customers and collecting the amount, as well as remitting the TCS amount to tax authorities. TCS is applicable either at the time of debiting the customer or receiving the money from the customer during sale of notified goods, whichever is earlier. Suppliers are required to remit the TCS amount to the tax authority and issue the certificate Form 27D to the customer within ten days of receiving the payment.