TCS on GST included value or excluded value?

[CA-Gourav Garg]

Dear All,

My query is TCS@1% to be collected on sale value included GST or excluded GST?

For Eg.

Sale Value is ₹ 100/-

IGST @18% Rs. 18/-

Total Rs. 118/-

Now TCS @ 1% on which value, whether 100/- or 118/-?

Please provide solution with notification no. or any other documentary evidence.

AI Summary

Debate Sparks Over TCS Calculation on Scrap Sales: Should It Include GST? Section 206C of Income Tax Act Explored. A discussion on a forum revolves around whether Tax Collected at Source (TCS) should be calculated on the sale value inclusive or exclusive of GST. The query, initially misunderstood as related to GST, is clarified to concern TCS under the Income Tax Act, specifically on scrap sales. Participants debate whether TCS should be applied to the total amount including GST (118) or just the base sale value (100). The conversation references Section 206C of the Income Tax Act, detailing TCS rates and conditions, emphasizing the need for documentary evidence to support the correct application of TCS.