TCS on Cash Receipt against sale of goods

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Rajagopal K (Querist)

30 June 2016 Issue: ABC Ltd has sold trading goods to Y Ltd vide bill No 20 for Rs.5 Lakhs on 01.06.2016 and bill no 30 for Rs.7 Lakhs on 08.06 2016. On 03.06.2016 Y Ltd paid cheque for Rs.3 Lakhs against sale invoice no 20 dated 01.06.2016. On 04.06.2016 Y Ltd paid cash Rs.2 Lakhs against sale invoice ni 20 dated 01.06.2016. On 12.06.2016 Y Ltd paid Rs.5 Lakhs through RTGS against Sale Bill no.30 On 16.06.2016 Y Ltd paid cash Rs.2 Lakhs against Sale bill no.30 What is the trearment for TCS impact for the above said transactions? please do the needful asap

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

01 July 2016 No TCS applicable as cash payment not exceeded 2 lacs for each invoice.

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Saket Jain

Saket Jain (Expert)

01 July 2016 TCS is applicable if any part is received in cash and bill amount exceed 2 Lacs.
TCS is payable on receipt of cash.
Thus in both cases TCS will be applicable.

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

02 July 2016 Mr Saket Jain Please see the recent clarifications.

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Saket Jain

Saket Jain (Expert)

02 July 2016 I agree with Mr Seetharaman. My opinion was based on provision and its interpretation. However the CBDT Circular No. 23/2016 exempt TCS provision if cash receipt does not exceed 2 Lacs. Thanks & Regards.

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