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Tcs on cash sales

Deepak Tapse (Accounts Manager - Taxation) (1771 Points)

07 July 2016

W.e.f. 01/06/2016, 1% TCS to be collected on Cash Sales or Service exceeding Rs. 2 Lakh, In this regards, two lakh limit is per transaction or agreegate during the year?

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8 Replies

Harshit Kabra (INVESTOR) (Student CA final) (1113 Points)
Replied 07 July 2016

per invoice

1 Like

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CA Harshal Totla (Chartered Accountant) (2229 Points)
Replied 07 July 2016

Mr.Deepak, the limit is per transaction

palak gupta (CA Final Student) (52 Points)
Replied 07 July 2016

the limit is on cash receipts per transaction and for detail refer cbdt circular 23/2016 dated 24/06/2016

Prateek (Partner) (143 Points)
Replied 07 July 2016

the limit is for per transaction. and also the cash component should be more than the rs. 2 lakhs for collecting tds

Deepak Tapse (Accounts Manager - Taxation) (1771 Points)
Replied 08 July 2016

Thanks to all

That means, if i receive frequently less than 2 lakh cash from same person TCS is not applicable.

Also pl confirm the folliwing.

I raised the invoice in May 16 and cash received in June 16 which exceeds Rs. 2 Lakh, TCS is applicable?

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Nitin Kumar (Circle Commercial Head) (21 Points)
Replied 08 July 2016

yes tcs is appliacble when ever is should pay in cash.

Dinesh Mertiya (PROFESSIONAL) (761 Points)
Replied 09 July 2016

if your status is Individual or HUF

and you are liable to audit as per provisions of sec 44AB during the financial year immediately preceding the financial year in which the goods are sold or the services are provided.

then sec 206(1D) is applicable otherwise not

deepak kumar jain (Article) (21 Points)
Replied 10 July 2016

Dear sir

My quarry is that i have a transport company and i pay advance in cash for per trip which is exceed 2 lac. Please clearify about tcs for transportation