Form 27EQ - Quarterly TCS Statement
In India, certain specified transactions require the collection of tax at source, known as Tax Collected at Source (TCS). Sellers who collect TCS are mandated to furnish a quarterly statement of these collections using Form 27EQ. This form details all TCS collected during a quarter and the corresponding challan details of tax deposited.
What is Form 27EQ?
Form 27EQ is a quarterly statement that an authorized collector of TCS files with the Income Tax Department. It is a consolidated report of all TCS transactions undertaken during a particular quarter of the financial year. The form requires comprehensive details of both the collector and the collectees, along with the nature of goods on which TCS was collected.
Key Features of TCS:
TCS is applicable on specific categories of goods and services. Some common instances where TCS is applicable include:
- Sale of alcoholic liquor for human consumption.
- Sale of timber obtained under a forest lease or other forest produce.
- Sale of scrap.
- Collection of tax by an e-commerce operator on certain goods/services.
- Certain contracts like parking lot, toll plaza, and mine or quarry.
- TCS on sale of goods, which is distinct from TDS on purchase of goods.
The rates for TCS vary depending on the nature of the goods or services. Additionally, provisions related to higher TCS rates for non-filers of income tax returns may apply.
Information Reported in Form 27EQ:
Form 27EQ requires the collector to furnish detailed information, including:
- Collector Details: Name, address, and Tax Collection and Deduction Account Number (TAN) of the person or entity responsible for collecting TCS.
- Collectee Details: Name, address, and Permanent Account Number (PAN) of the person from whom tax was collected.
- Transaction Details: Nature of goods, value of the transaction, and the amount of TCS collected.
- Challan Details: Information about the challan through which the collected tax was deposited to the government, including challan number, date of deposit, and BSR code.
Due Dates for Filing Form 27EQ:
The due dates for filing Form 27EQ are similar to those for quarterly TDS statements:
- Q1 (April to June): July 15th of the financial year.
- Q2 (July to September): October 15th of the financial year.
- Q3 (October to December): January 15th of the financial year.
- Q4 (January to March): May 15th of the subsequent financial year.
It is crucial for collectors to adhere to these due dates. Non-compliance, including late filing or incorrect reporting, can lead to substantial penalties and interest charges under the Income Tax Act.
Issuance of TCS Certificate (Form 27C):
Upon successful filing of Form 27EQ and deposit of the collected tax, the collector is required to issue a TCS certificate, Form 27C, to the collectee. This certificate serves as proof of the tax collected and enables the collectee to claim credit for the TCS amount when filing their Income Tax Return.
The e-filing process for Form 27EQ is primarily conducted online through the official e-filing portal or via authorized software.