The Goods and Services Tax (GST) has brought about many changes in the taxation system. It has subsumed most indirect taxes and merged them into a single levy. The transition from multiple taxes to one unified tax, however, has not been easy for businesses. With the implementation of GST, there are many things that have changed for businesses and their accounting practices as well. While earlier businesses used to charge one specific rate for every product or service sold; now with the change in structure, they cannot do so anymore. This is because different rates of taxation have become applicable on each of these products or services which will be applicable on sale too. Therefore, we need to understand how TCS or Tax Coaches will operate under this new regime so that we can efficiently keep track of all our expenses and incomes without much stress. Here is a brief introduction on how you can deposit TCS in the central government:
What is TCS?
TCS or Tax Coaches are nothing but the self-assessment taxes on the basis of the income earned by the business. This is applicable to the businesses or traders who are liable to pay taxes on their income. These taxes are payable in the form of a percentage of the income earned. Therefore, they are also known as the self-assessment taxes. For example, if a businessperson earns Rs. 10,000 in a given year, he or she is liable to a tax on the income. This means that 10% of the income will have to be paid to the government in the form of taxes. Such taxes are paid by businesses to the government and are known as the self-assessment taxes. The businesses whose turnover is less than Rs. 20 Lakh are exempted from paying any tax and are only required to file their returns. The tax can be deposited either in cash at the government treasury or by cheque. The government is liable to accept the cheque.
TDS Repayment And Calculation
The tax deducted at source or TDS is basically the tax that is paid by one party to another. While the other party is the government, the party paying the tax is the person or agency that pays or deducts the tax. However, TDS is not the same as Advance Tax or the payment of tax before it is due. This is because the amount is not due to the government but is actually being deducted by the payer as a precautionary measure. A business can deduct TDS if the following two conditions are met:
Who Can Deposit TDS?
The businesses or entities liable to pay TDS are those that have been engaged in the following activities: – Manufacturing and selling tobacco products – Running hotels and restaurants – Accepting commissions for the sale of goods and services – Transporting passengers for money – Providing services like construction, software-development, architecture, accounting, etc. – Receiving interest or commission for sale of shares, stocks, bonds, etc. – Selling gold or silver.
How to Deposit TDS in the Central Government?
As mentioned above, TDS is generally deducted from various transactions. Therefore, the tax is paid to the government by the party deducting it. However, it is sometimes important to deposit TDS in the government. The tax can be deposited by either making a physical payment or by using the digital payment facility. The different methods of depositing the TDS in the government include:
Conclusion
The Goods and Services Tax (GST) has brought about many changes in the taxation system. It has subsumed most indirect taxes and merged them into a single levy. The transition from multiple taxes to one unified tax, however, has not been easy for businesses. With the implementation of GST, there are many things that have changed for businesses and their accounting practices as well. While earlier businesses used to charge one specific rate for every product or service sold; now with the change in structure, they cannot do so anymore. This is because different rates of taxation have become applicable on each of these products or services which will be applicable on sale too. Therefore, we need to understand how TCS or Tax Coaches will operate under this new regime so that we can efficiently keep track of all our expenses and incomes without much stress.
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