TDS Software | TCS Collection

TCS at the sale. 206C and 206C(1H) computed automatically.

TCS on traditional 206C categories (tendu leaves, scrap, motor vehicles > ₹10L, foreign-tour packages, overseas remittances) computed at sale. Section 206C(1H) on goods sale > ₹50L per buyer per FY computed where applicable. Quarterly 27EQ drafted from the collection register.

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How it works

TCS, applied at sale.

Step 01

Sale triggers TCS

Each invoice line is checked against TCS-attracting categories: 206C (notified goods/services) and 206C(1H) (goods sale > ₹50L).

Step 02

Buyer turnover threshold (206C(1H))

For 206C(1H), the buyer-seller relationship is checked: if buyer is liable to deduct under 194Q, 206C(1H) is suppressed.

Step 03

Collection at the line

TCS rate applied at the line; collected amount recorded in the TCS register.

Step 04

27EQ drafted

Quarterly 27EQ (TCS return) drafted from the collection register; CIN reconciliation; CA review; filed via TRACES.

What the system does

Capability, input, output.

Capability	Input	Output
TCS engine	Sale line + 206C / 206C(1H) rules	TCS rate per line
206C(1H) threshold	Per-buyer FY sales	Threshold breach flag at the line
194Q suppression	Buyer 194Q liability	206C(1H) suppressed where 194Q applies
27EQ draft	Quarterly TCS register	Drafted 27EQ in TRACES format

TCS engine

Input

Sale line + 206C / 206C(1H) rules

Output

TCS rate per line
206C(1H) threshold

Input

Per-buyer FY sales

Output

Threshold breach flag at the line
194Q suppression

Input

Buyer 194Q liability

Output

206C(1H) suppressed where 194Q applies
27EQ draft

Input

Quarterly TCS register

Output

Drafted 27EQ in TRACES format

Compliance + integrations

TCS by the section.

Section 206C for traditional categories. Section 206C(1H) for goods sale above ₹50L per buyer per FY (FY-1 turnover above ₹10 crore). 194Q suppression applied where buyer is liable to deduct.

Regulations we work within

Section 206C, Income Tax Act

TCS on notified goods and services at the sale.
Section 206C(1H)

TCS on goods sale > ₹50L per buyer per FY (subject to seller turnover threshold).
CBDT Circular 13/2021

194Q vs 206C(1H) overlap resolution.

Connects to

TRACES 27EQ filing
Tally Prime TCS sync

TCS Collection FAQ

What buyers ask.

Foreign-tour package and overseas remittance TCS. Supported?

Yes. Section 206C(1G) (LRS overseas remittance) and Section 206C(1G) (foreign-tour package) are supported with the correct rates (5% / 20% based on threshold and category).

Motor vehicle sale > ₹10 lakh. TCS rate?

1% TCS at the sale per Section 206C(1F). The system applies it to motor-vehicle sales above the threshold; auto-included in 27EQ.

27EQ filing. Same flow as 26Q?

Yes. 27EQ drafts from the TCS register quarterly, reconciled against TRACES, signed off, filed. Form 27D (TCS certificate) issued to buyers in bulk after filing.

Related features

See your TCS register on next quarter's sales.

Connect one entity, free. Next quarter's sales auto-classify into TCS-attracting and not. The 27EQ drafts from the register; the CFO reviews on screen.