Tcs on sale of two wheeler

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 August 2016 Sale Value of Vehicle is Rs.485000
1st Cash Receipt - Rs.61000
2nd Cash Receipt - Rs.424000

1) Should TCS be collected on 2nd cash receipt alone as Cash receipt is >2 lakhs
2) Should TCS be collected on the total cash receipt

CA SAGAR M. AHUJA

CA SAGAR M. AHUJA (Expert)

23 August 2016 Dear Sir,
As per section 206C TCS will be collected at the rate of 1 per cent of sale consideration so you have to collect the TCS on full value and not only the 2nd cash receipt.

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Querist : Anonymous

Querist : Anonymous (Querist)

23 August 2016 If both the receipts are received on the same day and the receipts are billed separately,
1st receipt - No.101 (61000)
2nd receipt - No.102 (424000) then TCS to be paid only on 2nd?

ACA Anurag

ACA Anurag (Expert)

24 August 2016 Dear user,

Section 206C is applicable on bill wise as clarified in the circular.

In your case u have issued two separate receipts on the same day but there is only single bill so u have to deduxt TCS on whole bill@1%

Kindly like if my response has helped you

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