New TCS u/s.206C(ih) applicable to Service Invoices?

[gvenugopal g]

Dear Experts,

Good Evening,

Kindly clarify whether new TCS under section 206C(ih) of Income tax Act, w.e.f.01.10.2020 @0.075% is applicable to service Invoices, where some establishments raises tax invoices to their customers for materials and labour separately.

Thanks & Regards: G. VENUGOPAL

[Ganeshan Kalyani]

This TCS is applicable only on sale of goods and not on services.

AI Summary

TCS on sale of goods applies to goods transactions only; charges do not apply to pure services or labour invoices.
The provision operates as a levy on receipts from the sale of goods and does not extend to charges that are in the nature of services; TCS is chargeable on the goods component of mixed invoices but not on service or labour charges.