What is the difference between tds and vat

Post New Answer. What cst will be charged on it? We have wrongly used road permit of other party in consignment to kolkatta. The road permit used is the party from Kolkatta. How to resolve the issue?? What is means by Central Excise?

How to calculate Central Excise? If income tax is paid at the time of making a profit , then that term is called TDS Tax deducted from source. What is GST? What is TDS? Whereas TDS is a term used to deduct the percentage of income at that point of business when the profit is made. GST is a type of indirect tax to be paid to deductor whereas TDS is a type of direct tax to be levied upon deductee.

GST has to be paid whether the deductee made a profit or loss whereas TDS is only to be paid when there is a sustainable profit in the business transaction. GST reduces the flow of black money in the market. Whereas TDS assures that the process of collection of tax goes fairly and smoothly. GST replaced all of the primitive taxes and combined them into one whereas TDS is a process of submitting these taxes at the initial stage of the business. TCS is the tax which is collected by sellers while selling something to buyers.

TDS deduction is applicable on payments such as salaries, rent, professional fee, brokerage, commission, etc. TCS deduction is applicable on sales of goods like timber, scrap, mineral wood, and so on.

TDS is applicable only on payments that exceed a certain amount. Rates: In October , a new rule came into force. What happens when you fail to collect or deposit tax? There are legal consequences for failing to collect or deposit tax. This could include A penalty amount equal to the tax which is not deducted or collected Imprisonment of three to seven years plus fine An interest on the monthly tax amount eligible for deduction.

This interest applies for each month from the day when the tax becomes eligible for deduction to the day when it is deducted at the rate of 1 percent or when it is paid to the government at the rate of 1. Conclusion It is crucial to keep track of all your taxes. Speak to an insurance specialist now! Your Name. Search Forum: Search. Forum Home. Popular Threads.

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