Attention all online business owners! You\u00a0will now need to register in all operating states in order to collect TCS.<\/p>\n
Initially, businesses didn’t have to be registered in every state they function, to collect TCS<\/span><\/a>. A GST registration or a GSTN would suffice.\u00a0 Now, it is mandatory for businesses to register in every state and Union Territory they operate in, irrespective of GST<\/span><\/a> or GSTIN<\/span><\/a>. Additionally, they are supposed to deduct 1% tax collected at source (TCS) from October 1, 2018, before making payments to the suppliers.\u00a0\u00a0<\/strong><\/p>\n Here, is everything you need to know about the registrations and the procedure for collecting TCS.<\/p>\n As per Legalraasta<\/span><\/a>, Tax Collected at Source (TCS) is an income tax which is payable by the seller who\u00a0collects in turn from the buyer and it is provided under\u00a0section 206C<\/strong>\u00a0of Income Tax Act, 1961.<\/p>\n As per Legalraasta, individuals and organizations who sell any goods or services, fall under the following categories:<\/p>\n Domestic and local companies are to register in every state or Union Territory they operate to collect the TCS. Foreign companies that operate in India, are to register with the help of “agents” for the same. Additionally, the CBIC (Central Board of Indirect Taxes and Customs) have come out with a list of 20 FAQ’s to address possible industry related queries. The FAQ’s also have the modalities to the followed by the e-commerce companies for deducting TCS.<\/p>\n To obtain the TCS registration, the e-commerce business should declare the Head Office as its primary location where major operations happen, irrespective of whether the business has a physical presence or not.<\/p>\n These companies are to furnish digital statements which contain the following:<\/p>\n Additionally, the companies should also file their annual statements by the end of every fiscal year, in which the tax was collected under the Form GSTR – 9B.<\/p>\n Disclaimer: Information in this article is intended only to provide a general overview and is not intended to be treated as legal advice. Please consult a tax expert to get a better understanding of the GST Laws.<\/strong><\/em><\/p>\n Want to stay updated with the latest GST news? Subscribe to our blog digest<\/strong><\/a><\/span> to get more such news, business gyaan, product updates etc.<\/p>\nWhat are TCS taxes?<\/h2>\n
Classification of Seller for TCS:<\/strong><\/h2>\n
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What are the changes in order to collect TCS now?<\/h2>\n
How to obtain the TCS registration?<\/h2>\n
Documents needed for TCS registration:<\/h2>\n
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