TCS Claim Services for Ecommerce Business

    • QTR return for e-commerce operator
    • TDS Filing on a Monthly basis
    • GST Filing support for e-commerce
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    • TCS Filing for e-commerce
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Tax Collected at Source (TCS) under GST refers to the tax collected by an e-commerce operator on behalf of a supplier of goods or services who makes supplies through the operator's online platform. 

TCS will be calculated as a percentage of net taxable supplies. Section 52 of the CGST Act deals with TCS claim services for ecommerce provisions under GST.

TCS Claim Services under GST

TCS is payable by certain operators who own, operate, and manage e-commerce platforms. 

TCS applies only if the operators collect payment from customers on behalf of vendors or suppliers. 

In other words, when e-commerce operators pay the consideration collected to the vendors they have contracted, they complete the transaction.

In other words, when e-commerce operators pay the consideration collected to the vendors, they must deduct TCS and pay the net amount. 

Here are a few exceptions to the TCS provisions for e-commerce platform services: 

  1. Hotels and nightclubs 
  2. (unregistered vendors) 
  3. Passenger transport - motor cab, radio taxi, or motorcycle 
  4. Carpentry, Plumbing, and other housekeeping services (unregistered suppliers)

TCS claim services calculation example

If a buyer purchases a car from a showroom that is worth Rs. 11 lakhs, the showroom will deposit Rs. 11,000 as TCS. 

As a result, the total amount due from the buyer is Rs.11,11,000

The customer received an invoice for Rs. 12,000, on which 1% TCS was charged and collected at Rs. 120. 

As a result, the total amount payable by the customer is Rs. 12,120.

GST TCS claim services provision for e-commerce sales

Any dealer or trader selling goods on an e-commerce platform would receive payment from the platform after deducting a 1% tax under the IGST Act. 

(0.5% CGST and 0.5% SGST)

The tax would have to be paid to the government by the tenth of the following month.

All dealers/traders are required to register for GST on a mandatory basis.

Form 24G submission

In the case of a government office, where tax has been paid to the credit of the Central Government without the production of a challan associated with the deposit of the tax in a bank, the following rules must be followed and Form 24G must be submitted:

Rules governing the deposit of TDS without a challan (changes to Rule 30)

If TDS was deposited without a challan, the person to whom TDS was reported for depositing to the government must submit a Form 24G statement to the agency authorised by the Principal Director of Income Tax (systems). [Rule 30(4)]

Form 24G must be submitted within 15 days of the end of the applicable month.

Form 24G must be submitted:

 (a) with a digital signature 

(b) electronically with verification in Form 27A 

(c) or electronically verified as prescribed.

(d) Form 24G must be issued electronically under digital signature along with Form 27A verification or through an electronic process as prescribed.

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According to income tax law, the seller must collect TCS from the buyer either when debiting the amount payable to the buyer's account or when receiving such amount from the said buyer via any mode, whichever is earlier. As a result, the amount debited to the buyer's account or payment received by the seller must include VAT/excise/GST. As a result, one should collect TCS inclusive of GST.

According to the Income Tax Act, if a person fails to file the TCS return on or before the due date specified in the Income Tax Act, a fee of Rs 200 per day must be paid for the duration of the failure. 

The number of late fees, however, shall not exceed the amount of TCS. 

Before filing the TCS return, the late filing fees should be deposited. 

It should be noted that the Rs. 200 per day late filing fee is not a penalty.

If the tax collector files an incorrect TCS return, a penalty under Section 271H may be imposed. 

In other words, if the collector files an incorrect TCS return, a minimum penalty of Rs 10,000 and a maximum penalty of Rs 1,000,000 may be imposed.

es, Form 26AS shows information about Tax Collected at Source (TCS) by a seller of specified goods when such goods were sold to you. 

It will show the seller's information, as well as the TCS amount and the transaction for which tax was collected at the source.

The buyer has a PAN but hasn't filed any IT returns in the last two years. 

The buyer has been charged 5% TCS by the seller. 

Yes, the buyer can later adjust the TCS when making a payment towards self-assessed tax liability in subsequent assessment years.

Yes, the TCS collected on a buyer's PAN, like the TCS, is adjustable.

These provisions were enacted in response to the tax department's difficulties in assessing the income of assesses who enter into contracts for the sale of liquor, scrap, forest products, and so on. 

Legal entities such as firms or AOPs are established for this purpose, and no trace is left after the contract is signed. 

As a result, Section 206C of the TCS was introduced to combat large-scale tax evasion by income tax assesses in such products.

The source tax is the same as the advance income tax revenue collected by the tax department for a fiscal year. 

It is used for social upliftment, education, and national infrastructure development, among other things.

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