Section 206(1C)

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Janki Pithadia (Querist)
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01 October 2020 whether TCS u/s 206(1C) will be Levied on Basic value plus GST amount or only on the basic amount ???
any clarification regarding that issue???

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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01 October 2020 TCS u/s 206(1C) will be Levied on Basic value plus GST amount.

FAQ 17. Whether TCS is to be collected on the total invoice value including the
GST?
Section 206C(1H) provides that TCS shall be collected on the consideration for "sale of
any goods". Thus, in common parlance, the price bargained for the goods could be
regarded as consideration of goods. The question arises whether the GST shall form
part of the consideration or not.
The CBDT vide Circular No. 17, dated 29-09-2020, has clarified that since the collection
is made with reference to receipt of the amount of sale consideration, no adjustment
on account of indirect taxes including GST is required to be made for the collection of
tax under this provision. Thus, TCS is required to be collected on the sale
consideration inclusive of GST.

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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31 January 2021 TCS IS TO BE COLLECTED ON BASIC+ GST AS TCS TPO BE COLLECT ON RECEIPT AMOUNT

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