Form 143 / 27EQ – TCS Return for Tax Collected at Source

What is Form 143 / 27EQ?

Filing Form 143 / 27EQ is a statutory requirement for any entity or organisation that collects tax (TCS) on sale of goods or services under Section 394(1) / 206C. TCS is applicable to specified goods and services such as alcohol, scrap, tendu leaves, parking lots, toll plazas, overseas remittances, sale of motor vehicles and luxury goods exceeding certain thresholds. The form is submitted quarterly and provides details to the Income Tax Department to ensure accurate reporting of these transactions and the corresponding tax collected.

The return includes the details of the TCS collected along with the challan details for the amount deposit. Form 143 / 27EQ requires quarterly reporting of collectee-level TCS data along with corresponding challan details. Each entry must be linked with the applicable TCS section and collection code, and should reflect the nature and amount of the payment.

Applicability of Form 143 / 27EQ

Form 143 / 27EQ must be filed by:

• Government collectors
• Corporations and companies
• Firms, associations, or any other entity collecting TCS

TCS applies to certain payments or receipts involving:

• Sale of specified goods (e.g., scrap, tendu leaves, minerals) [Section 394(1) / 206C(1)]
• Lease, license or contract of parking, toll plaza or mining [Section 394(1) / 206C(1C)]
• Cash Receipts for Goods and Services [Section 394(1) / 206C(1E)]
• Sale of motor vehicle and Luxury goods exceeding Rs. 10 lakh [Section 394(1) / 206C(1F)]
• Foreign Remittances and Tour Packages [Section 394(1) / 206C(1G)]

TCS Rates under Section 394(1) / 206C

Latest TDS Rate Chart

What are the details to be filled in Form 143 / 27EQ?

• Details of the collector: TAN, PAN, name, and other details
• Challan details: BSR Code, date of payment, challan serial number, TCS amount
• Collectee details: PAN, name, nature of payment, amount paid, TCS rate, and tax collected

There is no distinction between resident and non-resident collectees in this form; it is common for all TCS-related filings.

In cases where TCS is not collected at a normal rates or lower rates, valid reasons or exemption codes must be specified under 'Remarks'.

Details about reasons for lower/no deduction

What are the filing due dates for Form 143 / 27EQ?

What is the TCS rate when PAN Is not available?

If the valid PAN is not furnished or is incorrect, tax collection (TCS) is at a higher rate – typically twice the rate of TCS or 5%, whichever is higher as per the provisions of the Income Tax Act. This rule is enforced under Section 397(2) / 206CC.

How is interest calculated for Late Collection or payment of TCS?

• If TCS is not collected: 1% per month from the date on which it was collectible until the date of actual collection
• If TCS is collected but not deposited: 1.5% per month or part thereof from the date of collection to the date of payment.

What are the Penalties for late filing of Form 143 / 27EQ?

Late Filing Fee – Section 427 / 234E

A fee of Rs. 200 per day is applicable until the return is filed, capped at the told amount of TCS collected within the Return.

Penalty – Section 461 / 271H

Penalty between Rs. 10,000 and Rs. 1,00,000 may be levied for incorrect or delayed filing.
Understanding of Section 461 / 271H

Prosecution for Non-Deposit

Failure to deposit collected tax may attract imprisonment of 3 months to 7 years, along with a fine.

Frequently Asked Questions – Form 143 / 27EQ

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