02 July 2021
1. Check whether the goods falling under exemption.
..Goods that are exported out of India.
..If the goods sold are already covered under subsections (1), (1C), (1F) and (1G) of section 206C.
2. Check the status of buyer. Not applicable to Government, State Government, an embassy, a High Commission, legislation, commission, consulate and the trade representation of a foreign state, A local authority
3.. Check whether total sales/turnover exceeds Rs. 10 crore( both goods and services) in the previous financial year.
4 . Check whether the consideration exceeds 50L(only sale of goods)
5. Check whether the PAN of buyer is available or not.
6. Collect the tax at the time of receipt of the amount on any sale exceeding Rs.50 lakhs as income tax at the rate of 0.10%. The applicable rate may change to 1% if the buyer does not possess a PAN/Aadhar Card.
7. The seller is responsible for payment of TCS to the government within 7 days from the month-end using Challan 281.
8. If the seller has not collected the TCS or has not paid to the government even after collecting it from the buyer, then he will be chargeable of interest @ 1% per month or part of the month.
9. File a tax return quarterly in form 27EQ. All the dues and interests are paid before filing the returns.
10. Provide a certificate (Form 27D) of TCS to the buyer within 15 days of the date of filing.