TCS 206C for sale od motorized machinery
This query is : Resolved
06 October 2025
We’re in the business of Selling Machinery, such as ACE Backhoe Loader and other motorised machinery (HSN 84295900). Whether TCS under Section 206C(1F) would be applicable on such sales, considering these as motor vehicles?
06 October 2025
Backhoe loaders typically are registered and permitted to operate on public roads, so they usually qualify as "motor vehicles" under the Motor Vehicles Act, unless exclusively used in factory premises or off-road and not adapted for road use. Therefore, sales of such machinery to end-buyers (not dealers/distributors) for amounts exceeding ₹10 lakh would be subject to TCS @ 1% under Section 206C(1F).
The CBDT has clarified that Section 206C(1F) applies to retail sales to consumers, not sales from manufacturers to dealers/distributors. So, if the sale is to a dealer or distributor for further resale, TCS under this section does not apply, but if it is a direct sale to the end-user, it does.
The CBDT has clarified that Section 206C(1F) applies to retail sales to consumers, not sales from manufacturers to dealers/distributors. So, if the sale is to a dealer or distributor for further resale, TCS under this section does not apply, but if it is a direct sale to the end-user, it does.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Itr 1 processing
- Reporting Income under Section 44ADA
- ITR 2 Short Term gain & Long term gain
- Off Market debit and credit transaction
- Showing Gift from relative in ITR for this year
- ITR 1: Details for showing Exempt Income
- Form 10E u/s 89(1). Need clarification because experts opinions differ !!!!
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- ITR selection for salaries and capital gain less than L
- ITR returnFY25-26
- ITR validation error - Balance sheet is not filled
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
