Tcs u/s 206-c (1)
Querist : Anonymous
Kindly clear that the newly inserted section 206C(1) is applicable on all asseesee's and who get their books audited u/s 44AD below 1 Crore. It is clear to me that it is applicable on all audited firms
Querist : Anonymous
Querist : Anonymous
* **Section 206C(1)** applies to **all sellers**, regardless of whether the buyer's accounts are audited or not. The seller has to collect TCS if the transaction falls under specified goods or thresholds.
* Now, about the **audit under section 44AB** (regular tax audit) and **audit under section 44AD** (presumptive taxation scheme audit):
* The **TCS provisions under 206C(1)** are **linked with audit under 44AB**, meaning if the buyer’s turnover crosses the audit limit (and audit is done under 44AB), TCS collection is generally applicable.
* **Audit under 44AD** (presumptive audit) is treated differently — TCS applicability is not mandatory in such cases because the turnover is generally below the 44AB audit limit.
* So, **TCS u/s 206C(1) is generally applicable when the buyer's books are audited under 44AB**, and not applicable when audit is only under 44AD or no audit at all.
**In short:**
| Buyer’s Audit Status | TCS under 206C(1) Applicability |
| ------------------------------ | ------------------------------- |
| Audit under 44AB (Tax Audit) | Applicable |
| Audit under 44AD (Presumptive) | Generally Not Applicable |
| No Audit | Not Applicable |
---
If you want, I can share some relevant CBDT circular references to support this. Would that help?
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