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

AI Summary

Clarification on TCS Applicability: Section 206C(1H) Requires 0.10% on Sales Over 50 Lakh; 1% Without PAN/Aadhaar. A query was raised regarding the applicability of Tax Collected at Source (TCS) under section 206C(1H) for the fiscal year 2020-21. The question concerned whether TCS applies to sales of 10 lakh made after 30.09.2020, given that 50 lakh in sales had already been completed by that date. The responses clarified that if total sales to a buyer exceed 50 lakh in a fiscal year, TCS at 0.10% is collected on the amount exceeding 50 lakh. If the buyer's PAN or Aadhaar is unavailable, the TCS rate is 1%.