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Tcs on sale of coal

sudhakar (student) (39 Points)

06 May 2021

Dear sir

For TCS on sale of coal, whether i should collect TCS on value including gst or excluding gst. Any clarification or circular on this.

For TCS on sale of good, it was clarified that value for tcs to be including gst.

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11 Replies

bOnNy 616 (9 Points)
Replied 06 May 2021

No way. GST should not form part of the amount on which TDS\TCS is to be levied upon.

sudhakar (student) (39 Points)
Replied 06 May 2021

Sir

tcs on sale of good sec 206(1H), tcs to be collected on value incl of GST. It was clarified through circular by cbdt

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 06 May 2021

TCS including of GST should be collected

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sudhakar (student) (39 Points)
Replied 06 May 2021

@ sourav sir - Any circular on this. its clear in case of sec 206(1H). how abt other sections.

Lotus Agrawal (Practice) (1356 Points)
Replied 06 May 2021

In my opinion also, TCS should be collected on value including GST. regarding other sections no circular issued. but as circular issued for TDS on value exclusive of GST. So, dept. may have a view that TCS on value including gst should be collected.

Saurav Kumar (50 Points)
Replied 06 May 2021

GST is different and tcs/tds is different. GST is form part of CBEC and TDS/TCS relates to CBDT.
As I have done in some cases, both TDS and GST be deducted separately, and separate return will be filled, that will be called TDS/TCS return and GST return.

sudhakar (student) (39 Points)
Replied 06 May 2021

Dear saurav

im asking only from the income tax perspective. my query is regarding the under income tax act.

I anaysed this. i got the answer

tcs to be paid on the value including the taxes

refer case law - Vinod Rathore Vs UOI 2005 MP HC

thank u all for ur valuables inputs

Saurav Kumar (50 Points)
Replied 06 May 2021

GST on sale of coal is charged at the rate of 18% (9%-CGST & 9%-SGST).

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sudhakar (student) (39 Points)
Replied 06 May 2021

Dear sir

my query is not abt gst.

its abt income tax.

moreover, gst rate on sale of coal is 5%.

Saurav Kumar (50 Points)
Replied 06 May 2021

There is no any provision in the income tax Act 1961 to file GST return and also no any office is established in income tax office Mumbai to file GST return.
Main question is that whether TCS should be collected with GST or not.
My opinion is in support of that.
GST return and TDS/TCS return is different.
About rates of GST, I have searched in Google.

1 Like