TCS provision 206C (1H)

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This discussion clarifies the applicability of TCS under Section 206C(1H) of Indian tax law. While a turnover exceeding ₹10 crore in the preceding financial year triggers the provision, the actual collection of TCS at 0.1% is only required if receipts from a single debtor exceed ₹50 lakhs in the current financial year. Collection begins from 1st October 2020, and only applies to amounts received from individual debtors surpassing the ₹50 lakh threshold.

Nikhil Sharma

Nikhil Sharma (Querist)
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08 October 2020 Dear Sir,
Our turnover is exceeds 10 CR in preceding FY, hence liability to collect TCS @.1%

But we have not received exceed 50 Lacs in any preceding FY from any of my debtor,

Hence I need not to collect the TCS

Pls clarify is it correct....

Thanks
Nikhil

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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08 October 2020 1) If turnover exceeds Rs. 10 crores in financial year 2019-20, TCS provision attracts, but

2) tax collection (TCS) has to be done if receipts exceed Rs.50 Lakhs in financial year 2020-21 that to

3) along with the receipt from 1-10-2020 only.

Nikhil Sharma

Nikhil Sharma (Querist)
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08 October 2020 Sir criteria of 50 Lacs receipt from all debtors or from single debtor

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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08 October 2020 Single debtor...............

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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30 January 2021 If you have not received amount exceeding Rs. 5000000 from any debtor till date then no need to collect TCS.

Refer below article for more details:

https://www.caclubindia.com/articles/sec-206c-1h-42918.asp

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