Tcs 206 C (1H)

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This discussion clarifies the rules for collecting Tax Collected at Source (TCS) under Section 206C. For companies with turnover exceeding 10 crore, TCS at 0.1% is applicable to customers whose turnover is below 10 crore and transactions exceed Rs. 50 lacs. It's confirmed that TCS should only be collected once the transaction limit is crossed, not from the first bill. However, if collected early, depositing the tax with the government is crucial, and the purchaser can claim it when filing their return.

Priyanka Roy

Priyanka Roy (Querist)

30 January 2022 Our company turnover above 10 crore. last year so we are liable to collect tcs @ 0.1% from our customer whose turnover is below 10 crore & transaction limit above Rs. 50 lacs. We already started collecting tcs on every bill from 1st April 21. Please suggest me whether it is wrong or right. Do we need to wait to cross the limit?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

30 January 2022 It's not right. You need to wait to cross the limit.

CA Altamush Zafar

CA Altamush Zafar (Expert)

31 January 2022 There is no issue as such as long as you deposit the tax amount with the government. The purchaser will be able to claim TCS on filing his return.

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