Regarding 206c (1h) applicability

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This discussion clarifies the applicability of Section 206C(1H) regarding the ₹10 crore turnover threshold. The rule applies if the seller's turnover exceeded ₹10 crore in the *preceding* financial year. If the seller had no turnover in the previous year, the section will not apply in the current financial year but may become applicable in the next.

akshay maloo

akshay maloo (Querist)

02 February 2023 Hello, is tcs under section 206c (1h) applicable if turnover of 10 cr exceeds in the current financial year?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

02 February 2023 No, but check it for preceding year.
As per the explanation to Section 206C (1H), "a Seller shall be a person whose total sales, gross receipts or turnover exceeds ₹ 10 crore in the immediately preceding financial year in which the transaction takes place."

akshay maloo

akshay maloo (Querist)

02 February 2023 Thank You Sir, the seller did not exists in the previous year i.e fy 2021-22

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

02 February 2023 In that case the TDS section will apply in next FY, but not applicable in current FY.

akshay maloo

akshay maloo (Querist)

02 February 2023 ok sir, thank you very much

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

02 February 2023 Most welcome..