1% tcs on sale of goods above 200000 in cash

Tax queries 772 views 7 replies

Pawan Khandelwal

Student CS

26 Points Joined August 2013

Dear All,

As all of you know that F.M. introduced provision of 1% TCS on Sale of Goods in Cash above 200000 i have an query on that my query is on the liability of TCS Deduction. coz there are some industries in india which sale some more service/goods along with the higher invoice such like Motor Car Dealers sale insurance, warranty, accessories, etc. alongwith the sale of car. They Make one Invoice for car and others for other goods/services so i want to know that TCS Deduction should be on Car Invoice only or alongwith all services/goods

For Example : -

A purchase a car of Rs. 260546 and also purchase Car Inssurance Policy of Rs. 19641 Accessories 30500 now Dealer Deducted The TCS Amount on Rs. 260546 or (260546+19641+30500) = 310687.

Replies (7)

Harshit Kabra (INVESTOR)

Student CA final

1113 Points Joined June 2016

Dear pawan Khandelwal,

As first of all for all luxuary car TCS is to be collected if the "PRICE" of the car exceeds rs.10Lac.

Since the provision clearly says "PRICE OF THE CAR" so TCS is to be collected on the priced value of car not on invoiced value of car.

Senu Reddy

ca final

291 Points Joined April 2013

The Sale Consideration is not defined, but in general, the sale consideration means the total invoice value in which the VAT is included.

Harshit Kabra (INVESTOR)

Student CA final

1113 Points Joined June 2016

The optional categories shall not to be included in the price of the car, if the dealor is additionaly purchased the TAPE or RADIO and providing additionally accessories to the customer then only VAT comes in force.

further, if the manufacturing company(maruti,mahindra etc.) sololy giving all the extra parts to the dealor which is to attached with car then TCS is applicable on Such full value.

Hope u understood clearly,what i am saying.