TCS (Tax Collected at Source)

Tax collected by a seller from the buyer on specified transactions and paid to the government.

TCS is income tax that a seller collects from the buyer at the time of sale of certain goods or services, then deposits with the government. It is the mirror image of TDS.

Common examples include sale of scrap, certain high-value sales, and amounts collected by e-commerce operators. The buyer can claim the TCS as credit.

• Collected by the seller from the buyer on notified items.
• Deposited with the government and reported in returns.
• Buyer claims credit against tax liability.