TCS UNDER SECTION 206C(1) H

[Vijay Batra]

Dear All

Can anyone confirm TCS UNDER SECTION 206C(1) H will be applicable on supply of SEZ Sales and EOU division

AI Summary

TCS Not Applicable on Supplies to SEZs and EOUs Under Section 206C(1)H, Treated as Exports. A query was raised about the applicability of Tax Collected at Source (TCS) under Section 206C(1)H of the Income Tax Act on supplies to Special Economic Zones (SEZ) and Export Oriented Units (EOU). One response clarified that supplies to SEZs are treated as exports under the SEZ Act, and supplies to EOUs are deemed exports under the Foreign Trade Policy. Thus, TCS is not applicable as these fall under the exclusion for goods exported out of India. Another response suggested that exemptions apply only for supplies intended for authorized usage.