27EQ
Quarterly TCS return
Collector statement
TCS Return Filing -Form 27EQ
Form 27EQ, filed clean every quarter. Especially now that sale-of-goods TCS is gone.
We file quarterly TCS returns for live collection categories and clean up post-abolition scope confusion. From 1 April 2025, section 206C(1H) TCS on sale of goods is abolished, so businesses need to stop collecting wrongly and reconcile older trails carefully.
- Section and threshold review
- Challan and return mapping
- TRACES follow-through
- Correction support where needed
TRUSTED FOR TCS COMPLIANCE
TCS work handled with books, portals and deadlines aligned
206C(1H)
Abolished
From 1 April 2025
27D
TCS certificate
Issued from TRACES
Rs.10L
LRS threshold
FY 2025-26 anchor
PRE-NAV WORKFLOW
Where this service becomes useful
Each scenario starts as an accounts entry and becomes a tax record that must survive portal processing.
When
Quarter closes
The issue
Collections need buyer-wise reporting in Form 27EQ
We do
Section-wise TCS return data is prepared
When
Old sale-of-goods setup continues
The issue
ERP still applies abolished 206C(1H)
We do
Post-1 April 2025 scope is corrected
When
Buyer asks for Form 27D
The issue
TCS credit must appear correctly
We do
Certificate and credit trail are reviewed
When
Collector has mixed categories
The issue
Scrap, vehicles, LRS or tour packages need different treatment
We do
Live TCS categories are mapped before filing
What is TCS return filing?
TCS return filing is the quarterly reporting of tax collected at source by a collector through Form 27EQ. The return reports buyer details, section codes, collection amounts, challan mapping and credit that should later reflect for the collectee in 26AS and AIS.
FY 2025-26 needs a scope reset because section 206C(1H) TCS on sale of goods is abolished from 1 April 2025. Businesses that continue collecting it create customer disputes, refund issues and unnecessary reconciliation work.
ComplyLocal files 27EQ for live categories such as scrap, timber, minerals, motor vehicles above Rs.10 lakh, LRS remittances and overseas tour packages, while cleaning up old trails from earlier years where needed.
WHO THIS IS FOR
TCS Return Filing for real operating teams
The same compliance rule looks different for employers, vendors, collectors, property buyers, remitters and finance teams.
Scrap and minerals sellers
Live TCS categories mapped before 27EQ reporting.
Motor vehicle sellers
TCS treatment reviewed for vehicles above Rs.10 lakh.
LRS and tour operators
Thresholds and collection category reviewed before return filing.
Businesses stopping 206C(1H)
ERP, invoice and ledger cleanup after sale-of-goods TCS abolition.
HOW WE HANDLE IT
TCS compliance without loose ends
The workflow is built around source records first, portal filing second and TRACES verification after processing.
- 1
Scope and section review
Step 1We identify the payment or collection category, section, rate, threshold, TAN route and quarter before any filing or payment action.
- 2
Books and challan mapping
Step 2Ledgers, deductions, collections, challans, PAN data and branch records are matched before upload or correction.
- 3
Form 27EQ prepared
Step 3The statement, challan, certificate or reconciliation pack is prepared with section-wise and party-wise checks.
- 4
Portal filing and validation
Step 4We handle validation, upload, acknowledgement tracking and immediate error correction through the relevant workflow.
- 5
TRACES follow-through
Step 5After processing, defaults, certificates, credit visibility and correction needs are reviewed so the quarter actually closes.
POST-ABOLITION SCOPE AUDIT
Many businesses are still collecting sale-of-goods TCS wrongly
From 1 April 2025, 206C(1H) is gone. The new risk is over-collection, buyer disputes and refund cleanup.
206C(1H) stopped
Sale-of-goods TCS should not continue for FY 2025-26 invoices.
Live categories remain
Scrap, minerals, vehicles, LRS and tour packages still need review.
Old-year cleanup
FY 2024-25 and earlier trails may still need reconciliation.
Over-collection trap
Collecting abolished TCS creates customer and refund problems.
COMMON FAILURE POINTS
What goes wrong when the quarter is rushed
Most defaults are not dramatic. They are small mapping errors left alone until the portal or the payee complains.
The risk
Wrong section or rate used
A payment is classified casually, then the return creates short-deduction or wrong-code defaults.
How we handle it
We map the section and threshold before the challan or statement is filed.
The risk
PAN or party data mismatch
The deductee or collectee cannot see credit because the return data does not match tax records.
How we handle it
We reconcile PAN, amount, quarter, challan and certificate status through TRACES.
The risk
Challan remains unconsumed
Tax was paid, but wrong assessment year, section, minor head or CIN mapping creates a default.
How we handle it
We trace the challan and plan correction before the next filing cycle.
The risk
TCS reviewed only at year-end
By the time accounts close, interest, 234E fee, certificate delays and vendor complaints have already stacked up.
How we handle it
We run monthly payment discipline and quarterly reconciliation so issues stay small.
FAQ
TCS Return Filing FAQs
Self-contained answers on forms, due dates, challans, TRACES records, certificates, corrections and credit visibility.
Fast answersExpert support
- Form 27EQ is the quarterly TCS return filed by collectors to report tax collected at source, buyer details, challan allocation and section-wise collection data.
- The usual quarterly Form 27EQ due dates are 15 July, 15 October, 15 January and 15 May for the final quarter.
- Live categories include specified goods and transactions such as scrap, timber, minerals, motor vehicles above Rs.10 lakh, LRS remittances and overseas tour packages, subject to exact facts.
- Section 206C(1H) TCS on sale of goods was abolished from 1 April 2025. Businesses should not keep collecting it for FY 2025-26 sale-of-goods invoices.
- Form 27D is issued after the TCS return is filed and processed, generally within 15 days from the due date of the 27EQ statement.
- Yes. FY 2024-25 and earlier sale-of-goods TCS trails may still need challan, 27EQ, TRACES and buyer-credit reconciliation.
- Form 27EQ is the quarterly TCS statement filed by collectors. It reports the collections, buyer details, challan mapping, section codes, and amounts collected during the quarter.
- Section 206C(1H) TCS on sale of goods was abolished from 1 April 2025. Businesses should stop collecting it for FY 2025-26 invoices and reconcile older FY 2024-25 trails separately.
- TAN is generally required for TCS collectors because collection, payment, return filing, certificate issuance, and TRACES correction workflows use the collector's TAN.
- Late deposit can trigger interest and defaults. The collected amount should be deposited by the statutory due date, mapped with the correct challan and reported in Form 27EQ.
- Form 27D is the TCS certificate issued to the buyer or collectee. It should be generated from TRACES after the relevant TCS return is filed and processed.
- Credit can go missing because of wrong PAN, wrong challan mapping, return errors, late filing, or correction delays. The collector's 27EQ and TRACES records must be reconciled with buyer-side 26AS and AIS.
RELATED TDS & TCS SERVICES
Keep the whole deduction and collection stack clean
File 27EQ only for live TCS scope.
We clean the scope, prepare the return and help stop obsolete 206C(1H) collection from leaking into invoices.
TCS return, payment, certificate, reconciliation and correction support