TCS ON SALES WEF 01-10-2020

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This discussion clarifies the applicability of Tax Collected at Source (TCS) on sales for the financial years 2019-20 and 2020-21. It addresses a client whose sales exceeded Rs. 10 crores, prompting questions about TCS deduction on specific amounts and the treatment of GST. Key points clarified include that TCS is applicable on sales receipts from 1st October 2020 at a rate of 0.10% on amounts exceeding Rs. 50 lakhs for the financial year, excluding GST. There is no TCS on sales receipts until 30th September 2020.

PARDEEP KAPIL

PARDEEP KAPIL (Querist)

17 September 2020 DEAR SIRS :: My client has crossed sales of Rs.ten crores for financial year 2019-2020 so they come under this category of TCS.... one debtor total sales as on 31-08-2020 including GST is Rs.54,07,529.00. I have to deduct and deposit TCS on 54,07,529.00 - 50,00,000.00 = 4,07,529.00 at 0.75 percent = Rs.3,056.47 "OR"
there is an exemption that no TCS on sales made till 30-09-2020 and thereafter 0.75 percent . Secondly TCS to be calculated on NET sales amount or Sales + GST .....PLEASE CLARIFY.... Regards

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

17 September 2020 TCS applicable on receipt basis from 1/10/2020.
TCS rate is 0.10%.
Exclude GST on TCS.

PARDEEP KAPIL

PARDEEP KAPIL (Querist)

17 September 2020 Dear Sir :: Seems my complete query has skipped your attention.... Your kind attentions is re-requested

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

17 September 2020 It's no TCS on sales receipts till 30/09/2020.
TCS @ 0.075% applicable on sale receipts exceeding 50 lacs during the financial year.

PARDEEP KAPIL

PARDEEP KAPIL (Querist)

17 September 2020 Respectful thanks....

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