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Section 206 c

Muhammed (Chartered Accountant) (251 Points)

30 July 2016

AS PER THE NEW AMENDED SECTION 206 C,

SELLER OF GOODS OR PROVIDER OF SERVICE IF HE RECEIVES RS. 2,00,000 AS CONSIDERATION FOR SALE OR HIS SERVICE HE HAS TO DEDUCT TDS @ 1% ON SALE VALUE, MY QUESTION IS

1. WHETHER RS.2,00,000/- IS AN AGGREGATE FOR ONE YEAR OR FOR EACH INDIVIDUAL TRANSACTION ?

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5 Replies

ajay (Student) (178 Points)
Replied 30 July 2016

The limit of 2 lakhs will be applicable for individual transaction. The said provision 206c(1d) will applicable only when the amount was received in cash

ajay (Student) (178 Points)
Replied 30 July 2016

The limit of 2 lakhs will be applicable for individual transaction. The said provision 206c(1d) will applicable only when the amount was received in cash

suresh (proprietor) (425 Points)
Replied 30 July 2016

Based on the reading of the provisions, it is inferred that the threshold limit for the purpose of collection of tax of Rs. 2,00,000 in case of sale of goods/provision of services should be considered transaction-wise and not aggregate of all the transactions for the year.

Muhammed (Chartered Accountant) (251 Points)
Replied 30 July 2016

what if we split those receipt in 2-3 days ?? or if we split the invoice amount in different dates ??

ajay (Student) (178 Points)
Replied 31 July 2016

If the receipt is splitted i.e. if amount was received in cash in multiple dates then the provision may apply if the invoice amount exceeds the threshold limit i.e. 2 lakhs.

If the invoice is spiltted i.e. if we raise the invoice in different days then the provision won't apply provided the amount in invoice does not exceed 2 lakhs