APPLICABILITY OF TCS

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ANIL MATHUR

ANIL MATHUR (Querist)

05 September 2020 Please advice , to whom TCS is applicable form 01/10/2020, only for composition dealer or to all.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

05 September 2020 It's applicable to all who is covered under this provisions.

This provision has been made applicable from 1st October 2020.

TCS shall be applicable where the seller receives any amount as consideration of more than Rs. 50 Lakhs from a single buyer for the sale of ANY GOODS.

Seller may be any person i.e. it can be Individual, Firm, AOP/BOI, Company, or any other form.

When to Collect
The TCS has to be collected at the time of receipt of such amount i.e. TCS shall be collected on Receipt Basis.

Rate and Ceiling Limit
TCS shall be collected at the rate of 0.1% of the amount in excess of Rs. 50 Lakhs.

If the buyer does not have PAN no. then the rate shall be 1 %.

(Note: – TCS rate has been reduced to 0.075% for the period 1st October 2020 to 31st March 2021.)

Non- Applicability
TCS shall not be applicable in the following cases: –

Where the turnover of the Seller is less than 10 crore in the preceding Financial Year.
Where the goods are exported out of India.
Where any TDS provision is applicable to such goods.
Where the buyer is the Central Government, State Government, Embassy, High Commission, legation, or trade representation of a foreign state.
Where the buyer is a local authority as per Explanation to Section 10(20).
Where the seller is dealing with the goods for which TDS and TCS provisions already applicable.

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