Applicability of TCS where the bill amount is exceeding Rs. 2 lakhs and when part of the bill is paid in cash and part through cheque - CBDT clarifies

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.... (TPL Division) New Delhi, dated the 24 June, 2016 Subject: Amendment in Section 206C of the Income-tax Act vide Finance Act 2016 - Clarifications regarding. In order to curb the cash economy, Finance Act 2016 has amended section 206C of the Income-tax Act to provide that the seller shall collect tax at the rate of one per cent from the purchaser on sale in cash of certain goods or provis....

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....s where the sale consideration received is partly in cash and partly in cheque and the cash receipt is less than two lakh rupees. Answer. : No. Tax collection at source will not be levied if the cash receipt does not exceed two lakh rupees even if the sale consideration exceeds two lakh rupees. Illustration: Goods worth Rs. 5 lakhs is sold for which the consideration amounting to Rs. 4 lakhs....