Processing of Statement of TCS (Tax Collected at Source) [Section 106CB]

1. Manner of processing the Quarterly Statement of TCS [Section 206CB(1)]

2. Board empowered to make scheme for centralized processing [Section 206CB(2)]

3. Consequential changes in other sections due to insertion of section 206CB relating to processing of quarterly statement of TCS

1. Manner of processing the Quarterly Statement of TCS [Section 206CB(1)]

Where a statement of tax collection at source or a correction statement has been made by a person collecting any sum (herein referred to as collector) under section 206C, such statement shall be processed in the following manner, namely:—

1. the sums collectible under this Chapter shall be computed after making the following adjustments, namely:—

   1. any arithmetical error in the statement;

   2. an incorrect claim, apparent from any information in the statement;

2. the interest, if any, shall be computed on the basis of the sums collectible as computed in the statement;

3. the fee, if any, shall be computed in accordance with the provisions of section 234E;

4. the sum payable by, or the amount of refund due to, the collector, shall be determined after adjustment of the amount computed under clause (b) and clause (c) against any amount paid under section 206C or section 234E and any amount paid otherwise by way of tax or interest or fee;

5. an intimation shall be prepared or generated and sent to the collector specifying the sum determined to be payable by, or the amount of refund due to, him under clause (d); and

6. the amount of refund due to the collector in pursuance of the determination under clause (d) shall be granted to the collector:

   However, no intimation under this sub-section shall be sent after the expiry of the period of one year from the end of the financial year in which the statement is filed.

2. Board empowered to make scheme for centralized processing [Section 206CB(2)]

The Board may make a scheme for centralised processing of statements of tax collected at source to expeditiously determine the tax payable by, or the refund due to, the collector, as required under section 206CB(1).

3. Consequential changes in other sections due to insertion of section 206CB relating to processing of quarterly statement of TCS

Under the existing provisions of the Act, after processing of TDS statement, an intimation is generated specifying the amount payable or refundable. This intimation generated after processing of TDS statement is (i) subject to rectification under section 154 of the Act; (ii) appealable under section 246A of the Act; and (iii) deemed as notice of demand under section 156 of the Act. As the intimation generated after the processing of TCS statement shall be at par with the intimation generated after processing of TDS statement, the Act has made the following amendments in sections 154, 246A and 156 of the Act wherever required on the same line of processing of TDS statements.

Intimation generated after processing of TCS statement shall also be—

1. subject to rectification under section 154 of the Act;

2. appealable under section 246A of the Act; and

3. deemed as notice of demand under section 156 of the Act.

Further, as the intimation generated after processing of TCS statement shall be deemed as a notice of demand under section 156 of the Act, the failure to pay the tax specified in the intimation shall attract levy of interest as per the provisions of section 220(2) of the Act.

However, section 206C(7) of the Act also contains provisions for levy of interest for non-payment of tax specified in the intimation to be issued. To remove the possibility of charging interest on the same amount for the same period of default both under section 206C(7) and section 220(2) of the Act, the Act has inserted sub-section (2C) in section 220 which provides as under:

Notwithstanding anything contained in section 220(2), where interest is charged under section 206C(7) on the amount of tax specified in the intimation issued under of section 206CB(1) for any period, then, no interest shall be charged under section 220(2) on the same amount for the same period.