REGARDING TCS ON SALES AND TDS ON PURCHASE

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This discussion clarifies the penalties for non-compliance with TCS on sales and TDS on purchases. Failing to collect TCS incurs a penalty under Section 271CA, equivalent to the uncollected tax amount. Similarly, defaulting on TDS deduction or payment makes a person an 'assessee in default', liable for penalties under Section 221 of the Income Tax Act.

sivakumar

sivakumar (Querist)
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28 August 2022 DEAR SIR / MADAM

IF TCS ON SALES NOT MADE WHAT IS THE PENALTY OF TCS ON SALES
IF TDS ON PURCHASE NOT MADE WHAT IS THE PENALTY OF TDS ON PURCHASE IN INCOME TAX
PLEASE SUGGEST SIR

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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28 August 2022 The section 271CA applies to the person who has failed to collect the tax at source (i.e. TCS). the defaulter is liable to pay the penalty under section 271CA to the extent of a sum equal to an amount of tax not collected.
Similarly, Section 201(1) of Income Tax Act expressly states that any person liable to deduct TDS on the income distributed, makes default in the deduction and/or payment of TDS, shall be treated “assessee in default” and penalty U/s 221 of Income Tax Act shall be payable by such assessee.

sivakumar

sivakumar (Querist)
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29 August 2022 THANK U SIR FOR YOUR VALUABLE SUGGESTION

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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29 August 2022 You are Welcome ...

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