TCS on Turnover u/s.6CL

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This query is : Resolved

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This discussion clarifies the collection of Tax Collected at Source (TCS) under Section 6CR. The key point is that TCS is triggered when total receipts from a customer exceed the threshold of ₹50 lakhs in a financial year, not just on sales made after a specific date. The collection is based on cumulative receipts and is considered on a yearly basis.

K.GANESH KARTHI

K.GANESH KARTHI (Querist)
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03 April 2021 Sir,
As we all know TCS u/s.6CR to be collected from those customers to whom a seller sells above 50 lacs during a financial year.
My query is whether collection is to continuously done even-after 01/04/2021 or collection to be made for bills only as & when the Total Turnover crosses 50 lacs. after above date.

CMA Poornima Madhava

CMA Poornima Madhava (Expert)
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05 April 2021 1) The trigger point here is when receipts (sale consideration) exceed threshold limit of ₹50 lacs (not sale value). When total receipts from a particular customer exceed the limit, tax to be collected at source, at applicable rates.
2) Such receipts to be considered on yearly basis.

K.GANESH KARTHI

K.GANESH KARTHI (Querist)
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05 April 2021 Thank you , mam. Now it is clear for me!

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