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India TCS (tax collected at source)

tcs
Read-onlyIdempotent

Calculate statutory Tax Collected at Source (TCS) under Section 206C of the Indian Income-tax Act, 1961 (the Act, rates and thresholds in force on as_of_date). Computes liability for Section 206C(1H) sale of goods above ₹50 lakh threshold, scrap sale, timber, alcoholic liquor, minerals, Liberalised Remittance Scheme (LRS), and overseas tour packages, including Section 206CC higher rates.

Tool call template

Replace each placeholder with a value matching the input schema. Only required parameters are included; add optional parameters as needed.

{
  "id": 1,
  "jsonrpc": "2.0",
  "method": "tools/call",
  "params": {
    "arguments": {
      "amount": "<amount>",
      "as_of_date": "<as_of_date>"
    },
    "name": "tcs"
  }
}

Input Schema

NameRequiredDescriptionDefault
amountYesSale consideration / receipt amount in INR (₹).
natureNoStatutory nature of the collection, which selects the section under s.206C and therefore the rate. State it exactly; it is not inferred and has no default, because a default would choose a section on the caller's behalf. Alias: payment_nature.
as_of_dateYesCivil date YYYY-MM-DD. Selects the rule pack in force on that date. Required: the engine will not assume a date.
buyer_pan_statusNoWhether the buyer has furnished a valid PAN. Note that "missing_or_invalid" currently returns INSUFFICIENT rather than a number: collection without PAN falls under s.206CC, and that rule is not yet in the active rate pack, so the engine refuses rather than answering at the ordinary rate and understating the liability.

Output Schema

NameRequiredDescriptionDefault
traceNo
amountNo
statusNo
pack_idNo
sectionNo
currencyNo
base_rateNo
applicableNo
as_of_dateNo
disclaimerNo
tcs_amountNo
liable_baseNo
minor_unitsNo
rule_ids_usedNo
effective_rateNo
payment_natureNo
total_collectibleNo

Schema Changelog

Changes observed during successful MCP inspections.

  1. Changed1 schema field changed
    • changedOutput schema / (root)
      Previous value: -nullNew value: +{
      +  "additionalProperties": true,
      +  "properties": {
      +    "amount": {
      +      "type": [
      +        "string",
      +        "number",
      +        "null"
      +      ]
      +    },
      +    "applicable": {
      +      "type": [
      +        "boolean",
      +        "null"
      +      ]
      +    },
      +    "as_of_date": {
      +      "type": [
      +        "string",
      +        "number",
      +        "null"
      +      ]
      +    },
      +    "base_rate": {
      +      "type": [
      +        "string",
      +        "number",
      +        "null"
      +      ]
      +    },
      +    "currency": {
      +      "type": [
      +        "string",
      +        "number",
      +        "null"
      +      ]
      +    },
      +    "disclaimer": {
      +      "type": [
      +        "string",
      +        "number",
      +        "null"
      +      ]
      +    },
      +    "effective_rate": {
      +      "type": [
      +        "string",
      +        "number",
      +        "null"
      +      ]
      +    },
      +    "liable_base": {
      +      "type": [
      +        "string",
      +        "number",
      +        "null"
      +      ]
      +    },
      +    "minor_units": {
      +      "type": [
      +        "object",
      +        "null"
      +      ]
      +    },
      +    "pack_id": {
      +      "type": [
      +        "string",
      +        "number",
      +        "null"
      +      ]
      +    },
      +    "payment_nature": {
      +      "type": [
      +        "string",
      +        "number",
      +        "null"
      +      ]
      +    },
      +    "rule_ids_used": {
      +      "type": [
      +        "array",
      +        "null"
      +      ]
      +    },
      +    "section": {
      +      "type": [
      +        "string",
      +        "number",
      +        "null"
      +      ]
      +    },
      +    "status": {
      +      "type": [
      +        "string",
      +        "number",
      +        "null"
      +      ]
      +    },
      +    "tcs_amount": {
      +      "type": [
      +        "string",
      +        "number",
      +        "null"
      +      ]
      +    },
      +    "total_collectible": {
      +      "type": [
      +        "string",
      +        "number",
      +        "null"
      +      ]
      +    },
      +    "trace": {
      +      "type": [
      +        "array",
      +        "null"
      +      ]
      +    }
      +  },
      +  "type": "object"
      +}
  2. Changed5 schema fields changed
    • addedInput schema / properties / as_of_date
      Added value: +{
      +  "description": "Civil date YYYY-MM-DD. Selects the rule pack in force on that date. Required: the engine will not assume a date.",
      +  "example": "2026-09-26",
      +  "pattern": "^\\d{4}-\\d{2}-\\d{2}$",
      +  "type": "string"
      +}
    • removedInput schema / properties / is_interstate
      Removed value: -{
      -  "default": false,
      -  "description": "True for interstate supply (IGST), false for intrastate supply (CGST + SGST).",
      -  "type": "boolean"
      -}
    • removedInput schema / properties / is_reverse_charge
      Removed value: -{
      -  "default": false,
      -  "description": "Whether transaction is subject to Reverse Charge Mechanism (RCM).",
      -  "type": "boolean"
      -}
    • removedInput schema / properties / rate
      Removed value: -{
      -  "default": 18,
      -  "description": "Statutory GST percentage slab.",
      -  "enum": [
      -    0,
      -    5,
      -    12,
      -    18,
      -    28
      -  ],
      -  "type": "number"
      -}
    • changedInput schema / required
      Previous value: -[
      -  "amount"
      -]New value: +[
      +  "amount",
      +  "as_of_date"
      +]
  3. Changed3 schema fields changed
    • addedInput schema / properties / amount / example
      Added value: +"100000.00"
    • addedInput schema / properties / amount / pattern
      Added value: +"^\\d+\\.\\d{2}$"
    • changedInput schema / properties / amount / type
      Previous value: -"number"New value: +"string"
  4. Changed9 schema fields changed
    • removedInput schema / properties / buyer_pan_status / default
      Removed value: -"valid"
    • changedInput schema / properties / buyer_pan_status / description
      Previous value: -"PAN status of the buyer. Missing PAN invokes Section 206CC (higher of 5% or twice statutory rate)."New value: +"Whether the buyer has furnished a valid PAN. Note that \"missing_or_invalid\" currently returns INSUFFICIENT rather than a number: collection without PAN falls under s.206CC, and that rule is not yet in the active rate pack, so the engine refuses rather than answering at the ordinary rate and understating the liability."
    • changedInput schema / properties / buyer_pan_status / enum
      Previous value: -[
      -  "valid",
      -  "missing"
      -]New value: +[
      +  "valid",
      +  "missing_or_invalid"
      +]
    • addedInput schema / properties / is_interstate
      Added value: +{
      +  "default": false,
      +  "description": "True for interstate supply (IGST), false for intrastate supply (CGST + SGST).",
      +  "type": "boolean"
      +}
    • addedInput schema / properties / is_reverse_charge
      Added value: +{
      +  "default": false,
      +  "description": "Whether transaction is subject to Reverse Charge Mechanism (RCM).",
      +  "type": "boolean"
      +}
    • removedInput schema / properties / nature / default
      Removed value: -"goods_sale_206c1h"
    • changedInput schema / properties / nature / description
      Previous value: -"Statutory classification of transaction under Section 206C."New value: +"Statutory nature of the collection, which selects the section under s.206C and therefore the rate. State it exactly; it is not inferred and has no default, because a default would choose a section on the caller's behalf. Alias: payment_nature."
    • changedInput schema / properties / nature / enum
      Previous value: -[
      -  "goods_sale_206c1h",
      -  "scrap_sale",
      -  "timber",
      -  "minerals",
      -  "parking_toll",
      -  "lrs_education",
      -  "lrs_medical",
      -  "lrs_other",
      -  "overseas_tour",
      -  "motor_vehicle"
      -]New value: +[
      +  "sale_of_goods_tcs",
      +  "scrap_tcs",
      +  "timber_forest_lease_tcs",
      +  "timber_other_tcs",
      +  "forest_produce_other_tcs",
      +  "tendu_leaves_tcs",
      +  "minerals_tcs",
      +  "mining_quarrying_tcs",
      +  "alcoholic_liquor_tcs",
      +  "parking_lot_tcs",
      +  "toll_plaza_tcs",
      +  "motor_vehicle_tcs",
      +  "lrs_education_loan",
      +  "lrs_education_medical",
      +  "lrs_other",
      +  "lrs_overseas_tour"
      +]
    • addedInput schema / properties / rate
      Added value: +{
      +  "default": 18,
      +  "description": "Statutory GST percentage slab.",
      +  "enum": [
      +    0,
      +    5,
      +    12,
      +    18,
      +    28
      +  ],
      +  "type": "number"
      +}
  5. Added

TDQS

A4.2/5.0
Behavior4/5

Does the description disclose side effects, auth requirements, rate limits, or destructive behavior?

Annotations already cover the safety profile (readOnlyHint, idempotentHint, destructiveHint=false, closed-world), so the description's extra value is the date-pinned rule pack ('rates and thresholds in force on as_of_date') and the scope of sections computed. It does not state that failures are returned as a refusal/INSUFFICIENT status in the body text (that detail lives in the schema), so it stops short of full behavioral disclosure.

Agents need to know what a tool does to the world before calling it. Descriptions should go beyond structured annotations to explain consequences.

Conciseness5/5

Is the description appropriately sized, front-loaded, and free of redundancy?

Two sentences, front-loaded with the statutory basis and then the coverage list. The legal citations and section numbers are load-bearing rather than padding, and there is no redundant restatement of the title or schema.

Shorter descriptions cost fewer tokens and are easier for agents to parse. Every sentence should earn its place.

Completeness4/5

Given the tool's complexity, does the description cover enough for an agent to succeed on first attempt?

An output schema exists, so return values need no explanation, and the description plus schema together cover inputs, rate-pack selection, and calculation scope. The remaining gap is routing guidance relative to tax siblings (tds, gst_regular), which the description does not address.

Complex tools with many parameters or behaviors need more documentation. Simple tools need less. This dimension scales expectations accordingly.

Parameters4/5

Does the description clarify parameter syntax, constraints, interactions, or defaults beyond what the schema provides?

Schema coverage is 100%, so a 3 is the baseline, but the description adds meaning the enum labels alone do not: the ₹50 lakh threshold that gates s.206C(1H), the specific commodity groups behind each nature value, and the fact that 206CC higher rates apply. It adds nothing about 'amount' or 'as_of_date' syntax, but the schema already carries those patterns and examples.

Input schemas describe structure but not intent. Descriptions should explain non-obvious parameter relationships and valid value ranges.

Purpose5/5

Does the description clearly state what the tool does and how it differs from similar tools?

States a specific verb ('Calculate') and a precisely scoped resource (TCS under s.206C of the Income-tax Act, 1961), then enumerates the exact transaction categories covered (206C(1H) sale of goods above ₹50 lakh, scrap, timber, liquor, minerals, LRS, tour packages, 206CC). An agent can tell this apart from the sibling 'tds' tool because collection vs. deduction and the section list are named.

Agents choose between tools based on descriptions. A clear purpose with a specific verb and resource helps agents select the right tool.

Usage Guidelines3/5

Does the description explain when to use this tool, when not to, or what alternatives exist?

Usage context is implied by the statutory framing and the as_of_date rate-pack language, so an agent can infer this is the India-TCS calculator to use for those transaction types. However, the description never says when NOT to use it (e.g., TDS withholding, GST, or non-Indian regimes) and does not point at any alternative sibling such as 'tds' or 'gst_regular'.

Agents often have multiple tools that could apply. Explicit usage guidance like "use X instead of Y when Z" prevents misuse.

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