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How deduct TCS And TDS

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PRABHAKAR LAL

157 Points Posted on 28 June 2021

Sir, last year my turn over was 7 crores. Do I have to deduct TCS and TDS from the saler? Last year from saler we had received more than one crore payent and this year also we have received sixty lakh.

Replies (3)

Quick Summary

This discussion clarifies the rules around deducting Tax Collected at Source (TCS) and Tax Deducted at Source (TDS) from sellers. If your turnover exceeds ₹50 Lakhs in a financial year, you may need to collect TCS at a rate of 0.1% (or 1% if PAN/Aadhaar is not provided) on the sale consideration exceeding ₹50 Lakhs. The provided example highlights a scenario with a high turnover and significant payments received from a seller, prompting the question about these deduction requirements.

Prabhat Pandey

144 Points Posted on 28 June 2021

The value or aggregate of such value exceeding ₹ 50 Lakhs in any previous year shall at the time of receipt of such amount collect a sum equal to 0.1% of the sale consideration exceeding ₹ 50 Lakhs as Tax Collected at Source (TCS) from the buyer. If the buyer has not provided the Permanent Account Number or the Aadhaar number to the seller, then the applicable rate of TCS will be 1 PERCENT.