Deduction of TCS u/s 206C(1H) w.e.f. 01-10-2020

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This discussion addresses confusion regarding the collection of Tax Collected at Source (TCS) under Section 206C(1H) of the Income Tax Act, effective from October 1, 2020. A manufacturer with a turnover of approximately 250 crore rupees is seeking clarification on whether TCS should be collected on the taxable value of goods or the total invoice value, including GST. The query also questions whether this TCS collection should be explicitly mentioned on the tax invoice.

Rakesh Sharma

Rakesh Sharma (Querist)
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01 September 2020 Respected Experts,

We are manufacturer and our turnover is around 250 Cr. and we are liable to collect Tax at
source u/s 206C(1H) w.e.f. 01-10-2020. But we are confused on what value we should collect
tax either on Taxable Value or Invoice Value (Included GST).

Kindly clear this query.

Regards,

Rakesh Sharma

Rakesh Sharma

Rakesh Sharma (Querist)
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01 September 2020 One more point in this query is that should we collect tax by mentioning in Tax Invoice.