any tcs on sale value more than 5 lacs

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palani s (Querist)

26 August 2016 in Karnataka One of the company not accepting sale invoice value more than five lacs, otherwise tcs 1% going to collect. if it is in act please help to clarify

ACA Anurag

ACA Anurag (Expert)

26 August 2016 Dear Palani, is its a cash transactions?? as there is no such rule exists ( Hope its not case of jewellery) Kindly like if my response has helped you

Kaushik Joshi

Kaushik Joshi (Expert)

27 August 2016 Dear Palani S, Section 206C of the act reads as under (1D) Every person, being a seller, who receives any amount in cash as consideration for sale of bullion or jewellery 87[or any other goods (other than bullion or jewellery) or providing any service], shall, at the time of receipt of such amount in cash, collect from the buyer, a sum equal to one per cent of sale consideration as income-tax, if such consideration,— (i) for bullion, exceeds two hundred thousand rupees; or (ii) for jewellery, exceeds five hundred thousand rupees; 88[or] 88[(iii) for any goods, other than those referred to in clauses (i) and (ii), or any service, exceeds two hundred thousand rupees: Provided that no tax shall be collected atsource under this sub-section on any amount on which tax has been deducted by the payer under Chapter XVII-B.]

Kaushik Joshi

Kaushik Joshi (Expert)

27 August 2016 how this will clarify the issue

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