CA Alexandar Gazi
Quick Summary
Section 206C (1H): TCS under Income Tax is now applicable on sale of all types of goods 1. Every seller of goods shall collect TCS @0.1% from buyer. Where buyer cant provide PAN or Aadhaar Number to the seller TCS shall be collected @1% instead of 0.1%. Section 206C(1H) shall come into effect
Daily Limit Reached
You have reached your daily limit of 2 Free Articles
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Broadcasts
- Daily E-Newsletter
- Unlimited Articles Access
BEST VALUE
2 YEAR PLAN
3,499
(Inclusive of GST)
1 YEAR PLAN
1,999
(Inclusive of GST)
View all CCI PRO benfits
Already a PRO member? Login here for an ad-free experience.
FAQ :
Section 206C(1H) requires sellers of goods to collect TCS at a specified rate from buyers. This applies when the total sale of goods to a buyer exceeds fifty lakh rupees in a financial year.
The standard TCS rate is 0.1% of the sale consideration exceeding fifty lakh rupees. If the buyer does not provide their PAN or Aadhaar, the rate increases to 1%.
Sellers whose total sales, gross receipts, or turnover exceeded ten crore rupees in the financial year immediately preceding the sale are liable to collect TCS.
TCS is collected by the seller at the time of receiving the sale consideration from the buyer, provided the conditions for its applicability are met.
Yes, TCS is not collected on exports out of India. It also does not apply if the buyer is liable to deduct TDS on the purchased goods under another provision of the Act.
No, it applies only when the aggregate sale of goods to a buyer exceeds fifty lakh rupees in a financial year. It also does not apply to sales where specific TCS rates are prescribed under other subsections of Section 206C.
CAclubindia
