Tcs on liquors

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 August 2012 We have one client whose business is of Liquor, as the TCS rules are applicable on sale of Liquor he is deducting TCS on sales but some of the party dont have PAN and some parties give wrong PAN. Now the Income Tax department has raised a demand of 20% of all the sale amount of which PAN is not available of Wrong PAN is mentioned. Please clear that rules of TDS i.e. 20% deduction of Tax non availability of PAN is also for TCS or not.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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10 August 2012 Section 206AA is applicable to Chapter XVIIB of the Income Tax Act.

Chapter XVIIB deals with TDS as well as TCS.

So, in case PAN is not provided, seller has to charge TCS at 20%.