TCS Theasehold Limit 50Lac

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This discussion clarifies the TCS (Tax Collected at Source) threshold limit of 50 Lakhs for sales. The TCS is applicable on the total sale value exceeding 50 Lakhs in a financial year, not on the entire transaction amount if it falls below this limit. Specifically, TCS is collected on the amount exceeding 50 Lakhs, meaning if a sale is for 74 Lakhs, TCS is only applied to the 24 Lakhs above the threshold.

Naresh Kumar Kejriwal

Naresh Kumar Kejriwal (Querist)
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27 January 2021 Hell,

I am doning first transaction and sales material for the value of Rs.74 lac in Jan-2020, I had charged TCS on full value Rs.74 Lacs @0.075%. But debtors are ready to pay TCS on Rs.24 only (74 Lac-50 Lac). Now my query is that 50 Lac TCS Threashold Limit up to 31st September not an exemptions ?? please suggest.

Thanks & Regards,
Rajesh Kumar

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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28 January 2021 TCS shall be collected on Total Sale Value received less ₹ 50 lakh. TCS applicable on 24 lacs only.

Naresh Kumar Kejriwal

Naresh Kumar Kejriwal (Querist)
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24 April 2021 As I know this Rs.50 Lac is the transaction limit for applicability of TCS rather than exemption limit. can we get details notification.

Notification:- TCS would be collected from buyer to whom sale exceeding Rs. 50 lakhs is made in a year.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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24 April 2021 Note: TCS to be collected on [Total Sale Receipt (Minus) ₹ 50 Lakhs]
See the link.
https://taxguru.in/income-tax/tcs-sale-goods-income-tax-provisions.html

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