Tcs on jewellery cash & card payment

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 February 2014 Dear Sir,
my query sale jewellery y p

jewellers sale gold jewellery of Rs 530000/- by Cash 44000/- & Balance Payment by Credit Card, incase tcs applicable hai ya nahi

Regards
mk

Querist : Anonymous

Querist : Anonymous (Querist)

18 February 2014 Dear Sir,
my query sale jewellery y p

jewellers sale gold jewellery of Rs 530000/- by Cash 44000/- & Balance Payment by Credit Card, incase tcs applicable hai ya nahi
plz help me

Regards
mk

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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26 July 2025 Hey! About TCS on jewellery sales involving both cash and card payments — here’s the lowdown:

---

### Applicability of TCS on Jewellery Sales (under Section 206C(1H)):

* **From 1st October 2020 onwards**, TCS @1% is applicable on sale of **goods like jewellery** if:

* The **total sale consideration** exceeds **Rs 50 lakhs** in a financial year **from a buyer**.
* The **cash payment portion** exceeds Rs 20,000 in a single transaction.

---

### Your case:

* Jewellery sale amount = Rs 5,30,000
* Cash payment = Rs 44,000
* Payment by card = Rs 4,86,000

---

### Is TCS applicable?

* Since the **cash payment is Rs 44,000 (which is > Rs 20,000 limit)**, **TCS @1% applies on the entire sale amount (Rs 5,30,000)** — not just on the cash portion.
* The mode of balance payment (credit card) does **not exempt the transaction from TCS** if the cash payment exceeds Rs 20,000.
* So, yes, **TCS is applicable here**.

---

### Important points:

* TCS must be collected on the **total sale value (Rs 5,30,000)** from the buyer.
* If the jewellery seller is registered for TCS, they must collect TCS and deposit it with the government.
* The buyer can claim credit of this TCS while filing their income tax return.

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If you want, I can help you with a detailed calculation or draft a TCS clause for invoices. Let me know!

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