Sir, How much invoice is applicable on TCS-TAX How much turnover is TCS applied to? Please tell me I will be grateful for this.
Replies (4)
Quick Summary
This discussion clarifies the applicability of Tax Collected at Source (TCS) on invoices, specifically concerning the sale of goods. TCS is applied to sellers whose preceding financial year turnover exceeded Rs 10 crore, with rates of 0.075% from October 2020 to March 2021, and 0.1% thereafter. Crucially, TCS is collected on the value of goods exceeding Rs 50 lakh purchased from the same seller within a financial year, and it does not apply to services or exported goods.
Introduced by Finance Act 2020 and
applicable from 1st Oct. 2020. Only covers sale of “Goods” and not “Services”.
Seller – Whose turnover in preceding F.Y.
exceeds Rs 10 crore.
Buyer – Person who purchased goods
excluding Govt./Govt. Authorities or a person importing
goods into India.
Exception for Goods – Goods exported out of india, or if TDS is liable to be deducted on such goods (e.g. Job work, composite supply), or
if TCS is applicable on such goods under any
other clause.
Rate of TCS – 0.1%(1% If buyer does not
provide PAN or Aadhar Number.
TCS Limit – If buyer purchases goods for the value
exceeding Rs. 50 lakh from the same seller
in a F.Y.
Applicability – TCS will be collected on value
in excess of Rs. 50 lakhs.
GST-TCS As per Section 52 of CGST Act E-commerce Operator are liable to collect TCS on taxable supply made through it by other supplier. The same is applicable from 1/10/18 by vide Notification 51/2018 CT