Tcs on sale of two wheeler

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 August 2016 Sale Value of Vehicle is Rs.485000
1st Cash Receipt - Rs.61000
2nd Cash Receipt - Rs.424000

1) Should TCS be collected on 2nd cash receipt alone as Cash receipt is >2 lakhs
2) Should TCS be collected on the total cash receipt

CA SAGAR M. AHUJA

CA SAGAR M. AHUJA (Expert)
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23 August 2016 Dear Sir,
As per section 206C TCS will be collected at the rate of 1 per cent of sale consideration so you have to collect the TCS on full value and not only the 2nd cash receipt.

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Querist : Anonymous

Querist : Anonymous (Querist)

23 August 2016 If both the receipts are received on the same day and the receipts are billed separately,
1st receipt - No.101 (61000)
2nd receipt - No.102 (424000) then TCS to be paid only on 2nd?

ACA Anurag

ACA Anurag (Expert)
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24 August 2016 Dear user,

Section 206C is applicable on bill wise as clarified in the circular.

In your case u have issued two separate receipts on the same day but there is only single bill so u have to deduxt TCS on whole bill@1%

Kindly like if my response has helped you

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