What is the difference between Tax Deducted at Source (TDS) and Tax Collected at Source (TCS)?
Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) are both incurred at the source of income.
|TDS is a tax that is deducted on payments made by a company/ individual if the payments exceed a certain limit.||TCS is a tax that is collected (by sellers) on the sale of specific goods (excluding production and manufacturing material).|
|Applicable on payments such as rent, brokerage, salary, professional fee, interest, commission, etc. ||Applicable on the sale of goods such as timber, scrap, minerals, cars, liquor, etc.|
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