Tcs on jewellery cash & card payment

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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

(Expert)

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

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### 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.

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### Your case:

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

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### 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**.

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### 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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