TCS stands for Tax Collected at Source. It is a tax collected by the seller from the buyer at the time of sale of certain specified goods or services. The seller then deposits this tax with the government.
TCS is collected as a percentage of the sale price and is applicable on transactions above a specified limit.
The seller is required to obtain a Tax Collection and Remittance Account Number (TCAN) from the tax authorities for collecting and remitting TCS. The TCS collected by the seller can be claimed as a credit by the buyer while filing their income tax return.