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TCS on Sales: Tax Collection at Source

Understanding TCS provisions on sales of goods under Section 206C with rates and compliance.

GetYourCA Team
1 March 2025·Updated 9 April 20261 min read12.5K views

TCS on Sales: Tax Collection at Source

Section 206C#

TCS on sale of goods by sellers.

TCS Rates#

  • 0.1% for specified goods
  • 1% for alcohol, timber
  • 5% for scrap

Threshold#

  • Aggregate sales above ₹50 lakh

Collection & Deposit#

  • Collect at time of sale
  • Deposit by 7th of next month

Conclusion#

TCS ensures tax collection at point of sale.

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GetYourCA Team

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Disclaimer

We have taken utmost care to research and write this article for your information. However, tax laws are complex and subject to frequent changes. This article is for general guidance only and should not be considered professional advice. Individual circumstances vary significantly — what works for one person may not apply to another.

Before making any tax-related decisions, we strongly recommend consulting with a qualified Chartered Accountant or tax professional who can assess your specific situation. We do not accept any liability for decisions made based on this information.

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