In business, certain transactions come with an additional compliance responsibility, not just receiving payment, but collecting tax on behalf of the government.
Yes, we’re talking about Tax Collected at Source (TCS) by the seller. But collecting the tax is only part of the responsibility, you also need to report these collections to the government.
Now, how do you inform the ITD about the amount of TCS you’ve collected from each buyer?
You do that by filing Form 143.
What is Form 143?
Form 143 is a quarterly TCS return that contains details of tax collected by a seller.
If you are a collector – meaning you sell specified goods or services that attract TCS, then you are required to collect tax from the buyer (collectee), deposit it with the government, and report those collections through this return.
Once filed, the collected tax is linked to the buyer’s PAN and reflects in their Form 168 (Annual Information Statement), allowing them to claim the credit while filing their ITR.
So the process works in two parts: first, you collect and deposit the TCS. Then, you report those collections through Form 143.
To maintain transparency with the ITD, Form 143 is divided into three sections:
Part A – Collector details
This section covers the information of the seller collecting the tax. It includes name, address, TAN, and PAN.
Part B – TCS collected and deposited
This section contains the summary of the total tax collected along with the challan details confirming that the amount has been deposited with the government.
Annexure – Transaction & collection details
This provides a transaction-level breakdown of each buyer, their PAN, the transaction date, the amount, and the rate of TCS applied.
What transactions does it cover?
Form 143 applies to specific categories of goods and services where the government wants to track high-value or specific types of spending. These are notified under Section 394 of the Income Tax Act, 2025.
Some of the commonly covered transactions include:
- Sale of motor vehicles above ₹10 Lakhs: Sellers must collect TCS on the sale of high-value vehicle transactions.
- Foreign remittances (LRS): When banks collect tax on money sent abroad for education, medical, or investment purposes.
- Scrap material transactions: Sellers dealing in scrap are required to collect TCS at the prescribed rate when selling such goods.
- Tendu leaves and timber sales: Specific forest produce, including tendu leaves and timber obtained under a forest lease, is subject to TCS collection at notified rates.
- Sale of alcoholic liquor: Sellers of alcoholic beverages must collect TCS at the applicable rate at the time of sale.
We’ve listed only the popular ones here. You can refer to Draft Form 143 attached at the bottom for the complete list of transactions covered.
What are the due dates for filing Form 144?
As mentioned earlier, depositing TCS and filing the return are two separate compliance steps, and each have a separate timeline.
1. Quarterly return filing
Since Form 143 is a quarterly return, it must be filed by the end of every quarter. Here’s the table with it’s due date:
| Quarter | Month covered | Due date |
|---|---|---|
| Q1 | April-June | 15th July |
| Q2 | July-September | 15th October |
| Q3 | October-December | 15th January |
| Q4 | January-March | 15th May |
2. Monthly TDS deposit
The TCS you collect in a particular month must be deposited with the government by the 7th of the following month.
For example, if TCS is collected in August, it must be deposited by September 7.
There is a special relaxation for the month of March – the deposit can be made up to April 30th.
Meeting these timelines ensures the TCS process is completed correctly.
What happens if you miss the deadline?
There are clear consequences if TCS isn’t collected or reported through Form 143 on time:
1. Late filing fee
If the return isn’t filed by the due date, a fee of ₹200 per day applies until the date Form 143 is filed. However, the total fee cannot exceed the TCS amount for that quarter.
2. Interest on delay
If you fail to collect TCS on time, interest of 1% per month or part of the month applies. And if you collected TCS but did not deposit on time, interest of 1.5% per month applies from the date of collection to the date of payment.
3. Additional penalty
If the delay extends beyond one year, or incorrect details are reported, the Assessing Officer may levy a penalty from ₹10,000 to ₹1,00,000.
To help you get familiar with the new layout and the payments it covers, we’ve linked the official draft below.
Draft Form 143.pdf (1.7 MB)
Questions? Let’s sort them out.