U/c 206 CR

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This query is : Resolved

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This discussion clarifies whether Tax Collected at Source (TCS) under Section 206C(1H) of the Income Tax Act needs to be deducted when a Public Sector Undertaking (PSU) receives payments exceeding 50 lakhs from another PSU. The consensus is that TCS under this section is not applicable to transactions between public sector undertakings.

manjunatha

manjunatha (Querist)

04 August 2023 Whether we need to deduct the TCS for the amount received (>50 lakhs) from Public Sector Undertaking company U/s 206 CR of the Income Tax Act?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

04 August 2023 TCS u/s 206 CR not applicable to public sector undertakings.

manjunatha

manjunatha (Querist)

04 August 2023 Sir,
Ours is a Public Sector Undertaking Company (ABC) and selling goods to another Public Sector Undertaking Company (XYZ) and received amount more than 50 lakhs from XYZ Company.
Whether we need to deduct 0.1% on the amount received over and above 50 lakhs?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

04 August 2023 TCS applicable under section 206C(1H) of the Income Tax Act.

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