Income-Tax-TCS on Sale of Goods in Excess of ₹ 50 Lacs

[A Wilson]

Dear All,

Income-Tax-TCS on Sale of Goods in Excess of ₹ 50 Lacs

• Whether this TCS @ 0.1% to be collected on the amount received towards Basic Value or Invoice Value including GST?

Please advice on this.

Thanks,

Wilson.A

AI Summary

TCS 0.1% on Sales Over 50 Lakhs: Includes GST in 'Consideration' Per Finance Bill 2020, Section 206 Amendment. A query was raised regarding whether the Tax Collected at Source (TCS) at 0.1% on the sale of goods exceeding 50 lakhs should be collected on the basic value or the invoice value including GST. In response, it was clarified that the Finance Bill 2020 proposed an amendment to section 206 of the Income Tax Act, 1961, to levy TCS effective from 1st October 2020. The term 'consideration' for TCS purposes includes GST, aligning with Section 145A, and may also include insurance and freight depending on contract terms.