We are proprietor concern having turnover more than 5 cr. Some of our parties deposit cash in our bank directly, there are 7-8 parties & they deposit 40-45 thousand in our bank account & we dispatch goods against that payment (bill amount is also 40-45 thousand). But the cash receipt in bank from these parties has crossed Rs. 2.00 Lacs. during the year. Should we collect Tax at source from these parties on cash receipts?
04 August 2016
Section 206(1D) providing for collection 1% tax on receipt cash as consideration of any goods (other than bullion and Jewellery, which are dealt separately). This section is providing for collection of tax on 'sale consideration'. Normally the 'sale consideration' indicates per transaction. It does not indicate aggregate sale. So far there is no clarification from Income Tax Department to interpret 'sale consideration'.
As Mr. B. Chackrapani Warrier replied No TCS is applicable.
CAclubindia
