TCS Compliance in Vidisha
CA-managed Tax Collected at Source (TCS) compliance under Section 206C — we assess applicability and rate, compute and deposit TCS by the 7th, file the quarterly Form 27EQ return, generate Form 27D certificates and reconcile collectee credit. 100% online, with transparent pricing quoted upfront.
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TCS Compliance in Vidisha
RoC Gwalior — Company House, City Centre, Gwalior – 474011
Madhya Pradesh High Court
23 (Madhya Pradesh)
Madhya Pradesh levies Professional Tax (max ₹2,500/year).
Agri Mandi, Sugar & Food Processing, Sanchi-link
Vidisha is a central MP agri (wheat, soybean) and food-processing district near Bhopal.
What Is TCS Compliance?
A quick, plain-language explanation before the details.
TCS (Tax Collected at Source) is tax a seller collects from the buyer at the point of sale on specified transactions, deposits with the government, and reports in the quarterly Form 27EQ so the buyer can claim credit through Form 27D.
Under Section 206C of the Income-tax Act, 1961, a seller of specified goods — and, under 206C(1F)/(1G)/(1H), of motor vehicles, LRS remittances/tour packages and goods above the threshold — must collect TCS from the buyer, deposit it, and file the prescribed quarterly return.
Administered by the Income Tax Department; returns are filed through the e-filing / TIN system and certificates and defaults are managed on the TRACES portal. A valid TAN is required to collect and deposit TCS.
TCS is an ongoing obligation for as long as the seller makes specified sales — deposited monthly by the 7th and reported through Form 27EQ each quarter, with Form 27D issued to buyers.
Quick Facts
Is This Service Right for You?
Ideal for
- Scrap dealers collecting TCS at 1% under Section 206C
- Motor-vehicle dealers selling vehicles above ₹10 lakh — 206C(1F)
- Tour operators selling overseas tour packages — 206C(1G)
- Authorised dealers / banks remitting funds under LRS
- Sellers of timber, tendu leaves, minerals and other 206C goods
- Sellers of goods above ₹50 lakh liable under 206C(1H)
You may need this if
- You sell any specified goods on which Section 206C applies
- You sell motor vehicles above ₹10 lakh to a buyer
- You remit funds or sell tour packages under LRS / 206C(1G)
- You already collect TCS and must file Form 27EQ each quarter
- You need to issue Form 27D certificates to your buyers
- You have received a TRACES default or short-collection notice
Not sure if you need this?
Talk to an Expert →Why TCS Compliance is Important
Accurate, on-time TCS collection, deposit and Form 27EQ filing keeps you compliant, protects buyer credit and avoids penalties. Here is why it matters.
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01
Avoid 234E Late Fees
Timely Form 27EQ filing avoids the ₹200-per-day late-filing fee under Section 234E (capped at the TCS amount).
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02
On-Time Deposit
TCS deposited by the 7th of the next month avoids interest under Section 201(1A).
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03
Correct Rate & Threshold
The right 206C rate and the current thresholds are applied on every collection, avoiding short-collection defaults.
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04
Form 27D on Time
Buyers receive their TCS certificate promptly so they can claim credit without disputes.
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05
Clean Collectee Credit
PAN-wise reconciliation so buyer credit reflects correctly in Form 26AS / AIS.
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06
Notice-Proof Records
Accurate returns reduce 271H penalty exposure and TRACES default notices.
Simple, Transparent Pricing
Custom quote for your case
Fees depend on your business type and scope. Get a clear, itemised quote upfront — no hidden professional charges, government fee billed at actuals.
Who Can Apply?
Eligibility checklist
- A valid TAN — required to collect and deposit TCS
- The correct Section 206C category and rate for each transaction
- PAN of buyers — higher rate applies under 206CC if not furnished
- A challan-based deposit of TCS by the 7th of each month
- Quarterly Form 27EQ filing (31 Jul, 31 Oct, 31 Jan, 31 May)
- Form 27D certificates issued to buyers after each return
Everything You Need. One Professional Team.
Applicability Review
Confirm which 206C transactions apply and the correct TCS rate for each.
TAN Check
Verify you hold a valid TAN, or guide you through obtaining one before collecting.
TCS Computation
Compute TCS on invoices and confirm the amount collected from each buyer.
Challan & Deposit
Prepare the challan and support the deposit of TCS by the 7th of the next month.
Form 27EQ Filing
Prepare and file the quarterly TCS return, error-checked before submission.
Form 27D Issuance
Generate the TCS certificates and share them with your buyers.
Collectee Reconciliation
PAN-wise reconciliation so buyer credit reflects correctly in 26AS / AIS.
Default Resolution
Review TRACES for short-collection and late-fee defaults and correct returns.
What You’ll Receive
What Details Are Required for TCS Compliance?
Requirements are grouped by collector details, transactions collected and the return/certificate stage. Keep clear scans (PDF/JPG) ready — everything is collected securely online, and we provide a checklist matched to your 206C category.
Collector Details
Your business & TAN- TAN of the collector (required for TCS)
- PAN of the business / entity
- GST registration details (where applicable)
- Authorised signatory details
- Previous TCS return / TRACES login (if any)
Transaction & Collection
Sales & TCS collected- Sales invoices with TCS collected
- Section 206C category & rate applied
- Buyer PAN details (206CC if not furnished)
- TCS deposit challans (by the 7th)
- Ledger of TCS collected and deposited
Return & Certificate
Filing & credit- Quarter and period for Form 27EQ
- Collectee (buyer) PAN-wise details
- Challan (CIN) details for reconciliation
- Earlier Form 27EQ / 27D (for corrections)
- Any TRACES default or notice received
TAN is mandatory
A valid TAN is required to collect and deposit TCS and to file Form 27EQ. If you do not have one, we help you obtain it before your first collection.
Buyer PAN or higher rate
Where the buyer does not furnish a PAN, a higher TCS rate applies under Section 206CC. Collect and verify buyer PANs to avoid short-collection defaults.
Deposit by the 7th
TCS collected must be deposited by the 7th of the next month (March collections by 30 April). Late deposit attracts interest under Section 201(1A).
Reconcile before filing
PAN-wise collectee details and challan (CIN) figures are reconciled before filing Form 27EQ so buyer credit reflects correctly in Form 26AS / AIS.
Don’t have all the documents?
We’ll identify what your case needs →How TCS Compliance Works (Step by Step)
The entire process is 100% online, with status updates through each monthly and quarterly cycle.
Applicability Review
Confirm which 206C transactions apply and the correct TCS rate for your sales.
Compute & Collect
Compute TCS on invoices and confirm the amounts collected from buyers.
Deposit by the 7th
Pay TCS via challan to the government by the 7th of the next month.
File Form 27EQ
Prepare and file the quarterly TCS return, error-checked before submission.
Issue Form 27D
Generate and share TCS certificates (Form 27D) with your buyers.
Reconcile & Support
Reconcile collectee credit and resolve any TRACES defaults or notices.
TCS Compliance — Key Cycle
| Stage | Expected Time |
|---|---|
| Monthly TCS deposit (challan) | By the 7th of the next month |
| Quarterly Form 27EQ return | 31 Jul · 31 Oct · 31 Jan · 31 May |
| Form 27D certificate to buyers | Within 15 days of filing 27EQ |
TCS collected in March is deposited by 30 April. The Q4 return (Jan–Mar) is due 31 May. Form 27D certificates are issued within 15 days of filing each quarterly return. TRACES defaults, once flagged, should be resolved promptly to avoid demand notices.
Key Dates — At a Glance
| Frequency | What Is Due |
|---|---|
| Monthly | Collect TCS on every specified sale · Deposit TCS by the 7th via challan · Maintain the TCS collection ledger |
| Quarterly | File Form 27EQ (31 Jul / 31 Oct / 31 Jan / 31 May) · Issue Form 27D within 15 days of filing · Reconcile collectee PAN-wise credit |
| Event-Based | Apply revised rates / thresholds on change · Collect buyer PAN to avoid 206CC higher rate · File a revised 27EQ to fix PAN / challan errors |
| On Notice | Review TRACES for short-collection defaults · Clear late-fee and interest demands · Respond to department notices with corrections |
Dates are indicative and may change with government notifications. Our team tracks every deadline so you never miss a filing.
Doing It Yourself vs TaxClue
Doing It Yourself
- Work out the correct 206C category and rate yourself
- Track monthly collections and deposit by the 7th
- Handle challan preparation and payment errors
- Prepare and file Form 27EQ each quarter without mistakes
- Generate and issue Form 27D certificates to buyers
- Reconcile collectee PAN-wise credit in 26AS / AIS
- Risk 234E fees, 201(1A) interest and TRACES defaults
With TaxClue
- Expert confirms the correct 206C rate and threshold
- Deposit reminders so TCS is paid by the 7th
- Challan prepared and payment supported
- Form 27EQ filed each quarter, error-checked
- Form 27D certificates generated and shared
- Collectee credit reconciled PAN-wise
- Clean returns with TRACES defaults handled
Skip the guesswork.
Let an expert handle it →Common Mistakes That Delay Your Application
TaxClue reviews your documents before filing to reduce avoidable errors.
What Compliance Applies on an Ongoing Basis
Monthly
- Collect TCS on every specified sale
- Deposit TCS by the 7th via challan
- Maintain the TCS collection ledger
Quarterly
- File Form 27EQ (31 Jul / 31 Oct / 31 Jan / 31 May)
- Issue Form 27D within 15 days of filing
- Reconcile collectee PAN-wise credit
Event-Based
- Apply revised rates / thresholds on change
- Collect buyer PAN to avoid 206CC higher rate
- File a revised 27EQ to fix PAN / challan errors
On Notice
- Review TRACES for short-collection defaults
- Clear late-fee and interest demands
- Respond to department notices with corrections
Penalties & Consequences
What is at stake if you do not comply
- Late-filing fee of ₹200/day under Section 234E for Form 27EQ, capped at the TCS amount
- Interest under Section 201(1A) for late deposit of collected TCS
- Penalty of ₹10,000–₹1,00,000 under Section 271H for non-filing or an incorrect return
- Higher TCS rate under Section 206CC where the buyer does not furnish a PAN
- Assessee-in-default treatment for the shortfall where TCS is not collected
Regulatory Updates 2025–26
- Budget 2025: TDS/TCS thresholds were rationalised — for example the annual TDS-on-rent threshold under Section 194-I was raised to ₹6 lakh and several rates were streamlined.
- 2025: TDS returns are filed quarterly in Forms 24Q/26Q/27Q (and 27EQ for TCS); Form 16/16A is generated from TRACES after filing.
- 2025: Higher TDS/TCS for non-filers under Sections 206AB/206CCA has been withdrawn to ease compliance.
- 2025: The Income-tax Act, 2025 takes effect from 1 April 2026 (AY 2026-27), consolidating the TDS/TCS provisions.
Why Businesses Choose TaxClue
CA / CS Team
Qualified Chartered Accountants and Company Secretaries with deep TDS/TCS expertise handle your compliance.
End-to-End
From applicability review to Form 27D issuance — fully managed, with minimal effort from you.
Fast Turnaround
Committed timelines with proactive status updates. No delays, no excuses.
100% Online
Everything over WhatsApp / email — no office visits ever required.
Transparent Fees
Fixed pricing quoted upfront — ₹0 hidden professional charges.
Post-Filing Support
30 days of post-filing support included, TRACES default handling covered.
Your Documents Deserve Professional Care
- Documents handled by professionals under confidentiality
- Access limited to the team working on your file
- Communication over secure digital channels
- Documents retained only as long as needed for compliance
Frequently Asked Questions
What is TCS under Section 206C?
How is TCS different from TDS?
Do I need a TAN to collect TCS?
When must TCS be deposited with the government?
Which form is used to file TCS returns?
What is Form 27D?
Which goods and transactions attract TCS?
What is TCS on the sale of goods under 206C(1H)?
What happens if the buyer does not furnish a PAN?
What penalties apply for TCS non-compliance?
What happens if I fail to collect TCS?
Does TaxClue handle TCS compliance fully online?
Who must collect TCS under Section 206C?
What are the TCS due dates for deposit and Form 27EQ?
How do I correct an error in a filed Form 27EQ?
Can a buyer claim credit or a refund of TCS collected?
How does TCS interact with TDS under Section 194Q?
Official Sources & Legal References
Every regulatory detail on this page — sections, thresholds, due dates and penalties — is drawn from primary law and official government sources. Verify them directly:
- Income Tax Department — e-Filing portalOfficial portal of the Income Tax Department
- TRACES — TDS/TCS Reconciliation & CertificatesForm 27D certificates, defaults and justification reports
- Income-tax India — Act, rules & Section 206CSection 206C, rates, thresholds and circulars
- ICAI — Institute of Chartered Accountants of IndiaProfessional body of Chartered Accountants
Related Guides
Section 206C TCS — Complete Guide
Read guide ArticleTDS & TCS Rate Chart FY 2025-26
Read guide ArticleTDS/TCS Rate Chart 2026-27
Read guide ArticleQuarterly Filing Due-Date Calendar
Read guide ArticleTDS/TCS Return Filing Guide
Read guide ArticleTDS under GST — Who Must Deduct
Read guideTCS Compliance Resources — All Free
Get Your TCS Compliance Done with a CA
Expert-managed TCS compliance under Section 206C — applicability and rate assessment, deposit by the 7th, quarterly Form 27EQ filing, Form 27D certificates and collectee reconciliation. Free consultation, transparent fee quoted upfront, zero hidden charges.