TCS ON SALE OF GOODS U/S 206C(1H)

[CABIJENDERKUMAR BANSAL]

Dear All

As per section 206C(1H), TCS on sale of goods is applicable from 01.10.2020.

My query is: for applicability under this FY i.e. 2020-21, if sale of ₹ 50 lacs has been completed upto 30.09.2020 and after 30.09.2020 upto 31.03.2021 sale is ₹ 10 lakh only. Will TCS is applicable on ₹ 10 lacs ?

Will ₹ 50 lacs limit to be considered on consolidated basis in FY 2020-21 (from 01.04.2020) or it has to be receipts of ₹ 50 lacs after 01.10.2020 for applicability of the section ?

Regards

[YAGAY andSUN]

If the seller makes sale of goods of value or aggregate value to a buyer exceeding ₹ 50 lakhs, he needs to collect TCS at 0.10 % at the time of RECEIPT of the consideration on the amount exceeding ₹ 50 lakhs. The TCS rate will be 1% if there is no PAN/Adhar of the buyer is available with the seller.

[Vijay Batra]

TCS will be applicable on only 10 Lakhs will be charged on Invoice

AI Summary

Tax collected at source on sale of goods applies where aggregate sales to a buyer exceed the threshold; TCS is collected on the excess receipts. TCS under section 206C(1H) is required where aggregate receipts from a buyer exceed the statutory threshold; TCS must be collected at the time of receipt on the amount exceeding the threshold. A lower prescribed rate applies when the buyer's valid identification is available and a higher rate applies where PAN/Aadhaar is not furnished. In the posed example, the seller is liable to collect TCS only on the subsequent receipts that constitute the excess over the threshold.