Section 206 c

AS PER THE NEW AMENDED SECTION 206 C, 

SELLER OF GOODS OR PROVIDER OF SERVICE IF HE RECEIVES RS. 2,00,000 AS CONSIDERATION FOR SALE OR HIS SERVICE HE HAS TO DEDUCT TDS @ 1% ON SALE VALUE, MY QUESTION IS

1. WHETHER RS.2,00,000/- IS AN AGGREGATE FOR ONE YEAR OR FOR EACH INDIVIDUAL TRANSACTION ?

Replies (5)

The limit of 2 lakhs will be applicable for individual transaction.  The said provision 206c(1d) will applicable only when the amount was received in cash

The limit of 2 lakhs will be applicable for individual transaction.  The said provision 206c(1d) will applicable only when the amount was received in cash

Based on the reading of the provisions, it is inferred that the threshold limit for the purpose of collection of tax of Rs. 2,00,000 in case of sale of goods/provision of services should be considered transaction-wise and not aggregate of all the transactions for the year.

what if we split those receipt in 2-3 days ?? or if we split the invoice amount in different dates ??

If the receipt is splitted i.e. if amount was received in cash in multiple dates then the provision may apply if the invoice amount exceeds the threshold limit i.e. 2 lakhs.

If the invoice is spiltted i.e. if we raise the invoice in different days then the provision won't apply provided the amount in invoice does not exceed 2 lakhs

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