Get Answers to 3 GST Queries FREE with Expert CA guidance from CAclubindia Pro. Subscribe Now!

Tax collected at source

Tax queries 711 views 2 replies

Ram CA

Student

50 Points Joined September 2009

There are 2 queries that I have relating to Tax Collected at Source (TCS):

1. In case of scrap sold by a company to another company in November and the payment is received during December, is the company that has sold scrap, liable to pay TCS by the 1st week of December or January?

2. In case the buyer of scrap pays advances during October to the company & the company issues a bill in November for the scrap sold, is the company liable to pay TCS by the 1st week of November or December?

Please clarify

Replies (2)

CA Chirag Haraniya

Chartered Accountant

902 Points Joined February 2009

As per Sec 206C : Every person ,being a seller shall. at the time of debiting of the amount payable by buyer to the account of the buyer , or at the time of receipt of such amount from the said buyer , whichever is earlier , collect from the buyer, a sum equal to 1% of the purchase price, as income tax....

It means tax is to be collected at the time of debiting buyers account or receipt of advance whichever is earlier....

And payment is to be made within time with respect to time related to collection of tax...