TCS under section 206(1H)

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This discussion clarifies the applicability of Tax Collected at Source (TCS) under Section 206(1H) of the Income Tax Act. It addresses whether TCS should be collected on the entire sales amount or only the portion exceeding ₹50 Lakhs for a financial year. The consensus is that TCS is applicable on the amount exceeding ₹50 Lakhs, and it's generally collected upon receipt of payment.

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(Querist)
13 May 2021 Turnover FY 20-21 More than 10 Crores

Current FY 21-22

Sales made to new customer in 01/04/2021 to 12/05/2021 Rs.51 Lakhs.

should i require to collect tcs @ 0.1% on entire sale amount of Rs.51 Lakhs or Rs.1 Lakhs (51-50).

Please reply.
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CMA Poornima Madhava

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CMA Poornima Madhava (Expert)
13 May 2021 Collect tax at source on Rs.1 lac, provided the payment is also received from the client.
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seeta

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seeta (Querist)
14 May 2021 If we charge TCS on Invoice than ?????
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CMA Poornima Madhava

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CMA Poornima Madhava (Expert)
14 May 2021 You can do that also but I think reconciliation would be a tedious task because TCS is applicable on receipts only.
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