TAXAJ

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.

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About This Plan

File your returns with TAXAJ and avoid tax notice
Created by potrace 1.15, written by Peter Selinger 2001-2017

Timeline

It usually takes 3 to 5 working days.

Buy Now
Services Covered
Who Should Buy
How It's Done
Documents Required
Services Covered

  • Registration on TRACES
  • Form 27EQ upto 10 deductees (1 no.)
  • Bulk PAN Verification
  • Challan Verification
  • Online FVU Generation and Submission
  • Generation of Form 16
Who Should Buy
  • Any individual who is required to collect TCS and issue certificates
How It's Done

    • 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
Documents Required
  • 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:

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

 

For the payments made by way of challan (i.e. ITNS 281), statement is required to be filed in FORM NO. 27EQ for every quarter.

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:

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/-

 

* No penalty will be charged under 271H if following conditions are fulfilled–
 
● TDS is deposited to the government
 
● Late filing fees and interest (if any) is also deposited
 
● Return is filed before expiry of 1 year from due date

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

 

For the payments made by way other than challan, a return is required to be filed in form No. 24G to the authorised authority on or before the dates given in the table below:
 

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.

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