TCS Return Filing - Form 27EQ
TCS, as the name suggests, refers to the collection of direct/ income tax while selling the prescribed products at prescribed rate. Form 27EQ contains all details pertaining to tax that is collected at source. According to Section 206C of the Income Tax Act 1961, this form must be filed every quarter. The form has to be submitted by both the corporate and government collectors and deductors. In this article, we look at Form 27 EQ in detail.
It usually takes 3 to 5 working days.
- Registration on TRACES
- Form 27EQ upto 10 deductees (1 no.)
- Bulk PAN Verification
- Challan Verification
- Online FVU Generation and Submission
- Generation of Form 16
- Any individual who is required to collect TCS and issue certificates
- Purchase of plan
- FIll in the details in the template provided
- Upload documents on vault
- Return form prepared by Tax Expert
- Generation of Form 16 & 16A
- Details of deductor
- Details of responsible person
- Details of deductee
- Challan details
- Deduction details
Features of Form 27EQ
The following are the characteristic features of Form 27 EQ.
- Form 27 EQ specifies the tax that has been collected at source and deducted by the payer.
- The form falls under Section 206 of the Income Tax.
- The form is collected on a Quarterly basis.
- An individual’s TAN details have to be mentioned in the form.
- It is mandatory for a government employer to mention ‘PANNOTREQD’ in the form.
- Similarly, a non-government employer has to mention the PAN details in the form.
Difference between TDS & TCS
While TDS is deduction of tax while making payments, TCS is collection of tax while making sales. The question that instantly comes in our mind when we read about both TDS and TCS at the same time is that – Do sellers collect TCS and buyers/ beneficiaries deduct TDS while making payments/ discharging liabilities simultaneously? The answer is no. TDS and TCS are not made on a single transaction. The transactions/ events that come under the TDS are different than the transactions that are covered under the provisions of TCS. The provisions of TCS are governed by the section 206C of the Income Tax Act, 1961.
TCS Applicable Goods and Its Rates:
TCS Applicable Goods and Its Rates:
S. No. | Particulars | Applicability criteria | TCS Rate | When to collect TCS |
1 | Alcoholic Liquor for human consumption | TCS only if these specified products are used for trading purposes and not for manufacturing, processing or producing articles/ things or for the generation of power. | 1% | At the time of debiting the amount payable by the buyer/ lessee/ licensee or at the time of receipt, whichever is earlier. |
2 | Tendu Leaves | ” | 5% | ” |
3 | Timber | ” | 2.5% | ” |
4 | Forest produce other than Timber & Tendu leaves | ” | 2.5% | ” |
5 | Scrap | ” | 1% | ” |
6 | Minerals being coal or lignite or iron ore | ” | 1% | ” |
7 | Lease/ License or transfer of any right or interest in any Parking Lot | TCS only when it is for the purpose of business. | 2% | ” |
8 | Lease/ License or transfer of any right or interest in any Toll Plaza | ” | 2% | ” |
9 | Lease/ License or transfer of any right or interest in any Mine/ Quarry | ” | 2% | ” |
10 | Sale of Motor vehicle | When consideration for sale of motor vehicle is more than Rs. 10 Lakhs | 1% | At the time of receipt |
Form 27C
In case the specified products (i.e. alcoholic liquor, scrap, minerals, tendu leaves, timber & other forest produce) are used for manufacturing, processing or producing articles/ things or for the purpose of power generation and not for the trading purposes, the resident buyer is required to furnish a declaration to the collector of tax in Form no. 27C. The collector is further required to submit the same to the department on or before the 7th day of the following month.
Compliances in Nexus with TCS
Due dates for deposit of TCS for the AY 2020-21:
For TCS by an office of the Government:
S.NO | PARTICULARS | DUE DATE |
1 | With Challan (Challan No./ ITNS 281) | 7th day of next month (including the payments to made for the month of March) |
2 | Without Challan | Same day on which tax is collected |
For TCS by Others:
S.NO | PARTICULARS | DUE DATE |
1 | With Challan (Challan No./ ITNS 281) | 7th day of next month (including the payments to made for the month of March) |
2 | Without Challan | Not allowed |
Content of Form 27EQ
The form contains five sections namely Section 1, Section 2, Section 3, Section 4 and Section 5.
Section 1
This section is for the deductor, where he/ she has to enter the following details.
- TAN Details
- PAN Details
- The financial year
- The assessment year
- If a statement has already been filed for the quarter in question
- If a statement has been filed then the provisional receipt number of the original statement will be required
Section 2
This section is for the collector, where he/ she has to enter the following details and information.
- The collector’s name
- The collector’s branch or division, if applicable
- The collector’s personal details like Residential Address, Phone number and E-Mail ID.
Section 3
This section is for the person who is in charge of collecting the tax.
- The individual’s name
- The individual’s full address
Section 4
This section has to be filled with information pertaining to the tax that is collected at source and the tax that is paid to the credit of the Central Government.
- Collection code
- The amount of Tax Collected at Source (TCS)
- The Surcharge amount
- Amount of Education Cess
- The amount of interest that has been levied
- Any other amount
- Total tax deposit amount which is the sum of the aforementioned amounts
- Cheque number or Demand Draft number if applicable
- The BSR code
- The date on when the tax amount was deposited
- The number mentioned in the transfer voucher or the challan serial number
- If the Tax Collected at Source has been deposited via book entry
Section 5
In this section, the taxpayer has to mention the details of the tax that has been collected and the details of the amount that has been paid with appropriate signatures. All details have to be entered in the annexure that is provided with the form.
Due dates for filing for TCS RETURN in Form 27EQ FOR AY 2020-21:
Due dates for filing for TCS RETURN in Form 27EQ FOR AY 2020-21:
QUARTER | QUARTER PERIOD | DUE DATE |
1st Quarter | 1st Apr’19 to 30th Jun’19 | 15th July 2019 |
2nd Quarter | 1st Jul’19 to 30th Sep’19 | 15th October 2019 |
3rd Quarter | 1st Oct’19 to 31st Dec’19 | 15th January 2020 |
4th Quarter | 1st Jan’20 to 31st Mar’20 | 15th May 2020 |
Interest & Penalty for Non Compliance
Interest attached with FORM NO. 27EQ:
Particulars | Interest Rate |
If not COLLECTED | 1% per month or part of the month from due date of deduction to actual date of deduction |
If not DEPOSITED | 1.5% per month or part of the month from the actual date of deduction to the actual date of payment |
Penalty attached with FORM NO. 27EQ:
Section | Minimum penalty | Maximum Penalty |
Late filing of 27EQ (Penalty u/s 234E) | @200 per day until filing of return | Maximum penalty can be equal to the amount of TDS deducted |
Non- filing of 27EQ Penalty u/s 271H* | 10,000/- | 1,00,000/- |
TCS Certificate Form 27D
Every collector of tax has to furnish a certificate in Form No. 27D to collectee within 15 days of filing of return.
Due dates for issue TCS Certificate in Form 27D FOR AY 2020-21:
QUARTER | QUARTER PERIOD | DUE DATE |
1st Quarter | 1st Apr’19 to 30th Jun’19 | 30th July 2019 |
2nd Quarter | 1st Jul’19 to 30th Sep’19 | 30th October 2019 |
3rd Quarter | 1st Oct’19 to 31st Dec’19 | 30th January 2020 |
4th Quarter | 1st Jan’20 to 31st Mar’20 | 30th May 2020 |
S.NO | PARTICULARS | DUE DATE |
1 | For months of Apr’19 to Feb’20 | 15th day of next month from the end of relevant month. |
2 | For the month of Mar’20 | 30th Apr’20 |
SUMMARY OF FORMS DISCUSSED ABOVE:
S.No | Form No. | Remarks |
1 | Form No. 27C | A declaration form to be furnished by a buyer of the specified goods to the seller in case such goods are to be used for the purpose other than trading. |
2 | Form No. 27EQ | A statement of return to be furnished quarterly by the collector of tax for the tax collected and deposited by way of challan (ITNS 281) to the Government exchequer. |
3 | Form No. 27D | A certificate to be issued by collector to the collectee as an acknowledgement for the tax collected and deposited. |
4 | Form No. 27G | A statement of return to be furnished monthly by the government collector of tax for the tax collected and deposited without challan. |
