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Related to section 206c(h) TCS on sale of goods

12 April 2021

to collect tcs in this section 50 lac can be seen every year seperately that mean tcs will be applicable on above 50 lac ...then if a seller collect tcs on last year 2020-21 then in financial year 2021-22 limit pf 50 lac will be given or not

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12 Replies

Thiyagarajan Kandasamy (118 Points)
Replied 12 April 2021

TCS based on consideration, for every single customer crossed more than 50 L in the FY or if customer having outstanding not paid for such invoices and consideration in the current FY also be taken care.

surbhi bansal (44 Points)
Replied 13 April 2021

That mean if any invoice related to previous financial year but received amount in current year then that received amount also considered on that amount in calculation of 50 lac

1 Like

Thiyagarajan Kandasamy (118 Points)
Replied 13 April 2021

Yes correct, receipt is called as consideration. TCS payable based on consideration

1 Like

Susmita Dutta, CA , CPA (CA ) (2141 Points)
Replied 15 April 2021

Originally posted by : surbhi bansal
	That mean if any invoice related to previous financial year but received amount in current year then that received amount also considered on that amount in calculation of 50 lac

Yes,Section 206C(1H) will arise only at the time of receipt of consideration.

Manjula (Accountant ) (119 Points)
Replied 16 April 2021

The released tcs circular is not clear about the year, 50lakha limit is for previous year or current FY.. could you please share the notification to send it to our customers

Thiyagarajan Kandasamy (118 Points)
Replied 16 April 2021

Its very clear TCS is based on consideration

Manjula (Accountant ) (119 Points)
Replied 16 April 2021

Thank you. actually my query is about threshold limit has to be calculated on previous year consideration or current FY

Thiyagarajan Kandasamy (118 Points)
Replied 16 April 2021

Consideration received for the previous balance in the current FY also take into the count, as per rule

Manjula (Accountant ) (119 Points)
Replied 16 April 2021

Some of our suppliers adding TCS in the invoices even the threshold limit not crossed in this financial year

Thiyagarajan Kandasamy (118 Points)
Replied 16 April 2021

They assumed it might be crossed and turnover crossed more than 10 crores TCS to be charged by the supplier whose customer transaction more than 50 lakhs including of consideration in current FY