TCS on sale of goods: sellers meeting turnover threshold must collect tax on receipts exceeding annual limit.
Section 206C(1H) requires a seller whose preceding-year turnover exceeds the prescribed threshold to collect TCS on receipts from a buyer that exceed the annual collection threshold, with the taxable base being amounts received above that threshold (including GST and advances). Exclusions apply for specified transactions, and differing rates depend on availability of buyer PAN. Practical compliance requires choosing a collection mechanism-per-receipt debit note, month-end consolidated debit note, or invoice inclusion-along with specific accounting entries, periodic reconciliation, remittance and year-end adjustments to reverse or write off balances where statutory conditions are not met. (AI Summary)