we are the seller and our customer given the declaration as per 194Q sec.but total receipt from them is 75lakhs in that 26lakhs for post July bills. And they aren't not deducting tds.becauseour sales to them have not crossed. pls check and confirm!
in this case.1) whether buyer have to collect TCS on receipt for prior to July bills.
2) or threshold limit is crossed including for post July bills payment so now receipt is 49 lakhs.
what to do now?
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206c(1h) threshold
Replies (1)
| Section 206C(1H) was introduced by Finance Act 2020 for TCS on sale of goods. Here are all the details: 1. What is Section 206C(1H): Every seller of goods is required to collect TCS (Tax Collected at Source) @ 0.1% from the buyer at the time of receipt of sale consideration, if the total receipts from that buyer exceed Rs. 50 lakh in a financial year. 2. Who Must Collect: Only sellers whose total sales/gross receipts/turnover exceeded Rs. 10 crore in the PRECEDING financial year are required to collect TCS under this section. Sellers with turnover below Rs. 10 crore are EXEMPT. 3. Threshold — Rs. 50 Lakh per Buyer: - TCS is applicable on the amount received from a single buyer in excess of Rs. 50 lakh in a financial year - First Rs. 50 lakh received from any buyer is exempt — TCS applies only on receipts BEYOND Rs. 50 lakh - Track buyer-wise cumulative receipts to determine when TCS kicks in 4. Rate: 0.1% on the sale consideration received (not on the invoice value — TCS is on actual receipt) 5. Exclusions: - Goods covered under Section 206C(1) (timber, tendu leaves, minerals, scrap etc.) — those have separate TCS provisions - Export sales are excluded from Section 206C(1H) - Goods on which TDS under Section 194Q is deducted by the buyer — no additional TCS needed (to avoid double levy) 6. Interaction with Section 194Q: If the buyer deducts TDS under Section 194Q (buyer's turnover > Rs. 10 crore, purchase from single seller > Rs. 50 lakh), then the seller need NOT collect TCS under 206C(1H) on that same transaction — only one of the two applies 7. TCS Rate for Non-PAN/Aadhaar: If buyer does not furnish PAN/Aadhaar, TCS rate doubles to 1% |
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