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

AI Summary

TCS under Section 206C(1H) applies only to goods sales, not service invoices with separate material and labor charges. A query was raised regarding the applicability of the new Tax Collected at Source (TCS) under section 206C(1H) of the Income Tax Act, effective from October 1, 2020, at a rate of 0.075%, on service invoices where establishments issue separate tax invoices for materials and labor. The response clarified that this TCS applies solely to the sale of goods and not to services.