How to Claim TCS on Amazon: A Comprehensive Guide for Sellers

Tax Collected at Source (TCS) is a mechanism implemented by the Indian government to ensure timely tax collection from e-commerce transactions. As an Amazon seller, understanding how to claim TCS is crucial for accurate tax filing and compliance. This guide will provide a comprehensive overview of TCS on Amazon, including its calculation, claim process, and relevant documentation.

Understanding TCS on Amazon

TCS is a percentage of the net taxable value of goods or services sold through an e-commerce platform like Amazon. The TCS rate for Amazon is currently 1%, shared equally between the Central Goods and Services Tax (CGST) and State Goods and Services Tax (SGST).

Who is Liable to Pay TCS?

TCS is primarily the responsibility of the e-commerce operator, in this case, Amazon. However, the seller is ultimately liable for the tax if the operator fails to collect it.

Calculating TCS on Amazon

TCS is calculated on the gross amount of the sale, excluding any discounts or promotional offers. The formula for TCS calculation is:

TCS = (Net Taxable Value) x (TCS Rate)

For example, if you sell a product on Amazon for ₹10,000, the TCS would be:

TCS = (10,000) x (1%) = ₹100

Claiming TCS on Amazon

As a seller, you can claim the TCS deducted by Amazon by following these steps:

Obtain a TCS Certificate: Amazon will issue a TCS certificate to you, which serves as proof of TCS deduction.
File GSTR-2 Return: Include the TCS amount in your GSTR-2 return under the “Input Tax Credit” section.
Reconcile TCS with Amazon: Verify that the TCS amount claimed in your GSTR-2 return matches the amount deducted by Amazon.

Documents Required for TCS Claim

TCS certificate issued by Amazon
Invoice or sales receipt for the transaction
GSTR-2 return

Timeline for TCS Claim

TCS must be claimed within the same month in which the goods or services were supplied. The TCS amount should be credited to the government within 10 days from the end of the month.

Penalties for Non-Compliance

Failure to comply with TCS regulations can result in penalties and interest charges.

Claiming TCS on Amazon is essential for sellers to ensure accurate tax filing and avoid penalties. By understanding the process and following the steps outlined in this guide, sellers can effectively claim TCS and fulfill their tax obligations.

How to claim TCS in GST portal for Amazon and Flipkart seller

FAQ

How do I claim my TCS refund?

File Your Income Tax Return: Include the TCS amount in your tax return. This is the trigger for the refund process. Ensure Accurate TCS Credits: Verify that all TCS amounts are reflected correctly in your Form 26AS. Wait for Processing: The Income Tax Department will process your return and ascertain the refund amount.

How do I claim TCS deducted by eCommerce?

How do I obtain the TCS Credit? By completing the “TDS and TCS Credit Receivable return” on the GST Portal, Registered Sellers of E-Commerce Portals can obtain full credit for TCS deducted.

How do I deduct TCS on purchase?

If a buyer purchases a car from a showroom that is valued at Rs.11 lakh then an amount of Rs.11,000 is the TCS deposited by the showroom. So, the total amount to be collected from the buyer is Rs.11,11,000. An invoice was issued to the customer for Rs.12,000 on which 1% TCS was charged and collected at Rs.120.

What is TCS in Amazon?

TCS is calculated on the gross payment amount. eCommerce operators or E-marketplaces will deduct it at 1% at the time of the sales amount for the goods or services getting credited. For example, a product selling for INR 5,000/- on Amazon invites a tax of 1% which is deducted by Amazon.

How to claim TCS on Amazon & Flipkart?

The seller is just required to print the invoice and send it with the product. Amazon, flipkart is required to deduct TCS at rate of 1% of total sale price from the amount payable to you. This TCS can be claimed as input tax credit by online sellers.

How to claim TCS refund?

To claim the TCS refund, you must fill out the ITR form’s relevant sections and provide supporting documentation. If you are subject to TDS or have already paid advance tax, the excess TCS will have to be claimed as a refund while filing tax returns but your money will be blocked till you get the refund.

How to file TDS & TCS credits online?

You can navigate to Return Dashboard > Select Month > Click on “Prepare Online” button under “TDS and TCS Credits received” section > Click on “Proceed to File” to generate Summary > Select Signatory & file the return via DSC or OTP . Once you file the return, you will see a message like the one shown in Image #6.

Can I claim TCS If I have already paid advance tax?

If you are subject to TDS or have already paid advance tax, the excess TCS will have to be claimed as a refund while filing tax returns but your money will be blocked till you get the refund. TCS is shown in Form 26AS as a tax credit, which can be claimed against the tax payable while filing an ITR.