TCS @1% w.e.f 01.06.2016 on sale of goods

Is it applicable for Single 2 Lacs above transaction with a single party or total transaction made during the year.

Sir ,

Is it correct to interprete that even if part of the payment made below Rs. 2 lack attracts TCS if total payment ( total  of cash payment  & cheque payment ) exceeds Rs.2 lacks.

Mr Gajavalli, Can you post the section please? If it is for any part then, the compliance will be too difficult.

but how we collect tcs on small portion of cash receipt 

Law Maker has once again made uncleared and confusing law. It is to be cleared before it become effective. Section 206C (1D) is not clear on part cash payment transaction and also not clear on 2 hundread thousand limit (i.e. Rs. 2 Lakhs) whether it is for a single transaction, single day transaction or annual transaction with a party.

Mr Gajavalli, I  know that it is section 206C. I wanted to see the amended text of the section as I could not find it on the net. Can you post it?

34[Provided that every person, being a seller shall at the time, during the period beginning on the 1st day of June, 2003 and ending on the day immediately preceding the date on which the Taxation Laws (Amendment) Act, 2003 comes into force, of debiting of the amount payable by the buyer to the account of the buyer or of receipt of such amount from the said buyer in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, collect from the buyer of any goods of the nature specified in column (2) of the Table as it stood immediately before the 1st day of June, 2003, a sum equal to the percentage, specified in the corresponding entry in column (3) of the said Table, of such amount as income-tax in accordance with the provisions of this section as they stood immediately before the 1st day of June, 2003.]]

35[(1A) Notwithstanding anything contained in sub-section (1), no collection of tax shall be made in the case of a buyer, who is resident in India, if such buyer furnishes to the person responsible for collecting tax, a declaration in writing in duplicate in the prescribed form36 and verified in the prescribed manner to the effect that the goods referred to in column (2) of the aforesaid Table are to be utilised for the purposes of manufacturing, 37processing or producing articles or things 38[or for the purposes of generation of power] and not for trading purposes.

(1B) The person responsible for collecting tax under this section shall deliver or cause to be delivered to the 38a[Principal Chief Commissioner or] Chief Commissioner or 38a[Principal Commissioner or]Commissioner one copy of the declaration referred to in sub-section (1A) on or before the seventh day of the month next following the month in which the declaration is furnished to him.]

39[(1C) Every person, who grants a lease or a licence or enters into a contract or otherwise transfers any right or interest either in whole or in part in any parking lot or toll plaza or mine or quarry, to another person, other than a public sector company (hereafter in this section referred to as "licensee or lessee" ) for the use of such parking lot or toll plaza or mine or quarry for the purpose of business shall, at the time of debiting of the amount payable by the licensee or lessee to the account of the licensee or lessee or at the time of receipt of such amount from the licensee or lessee in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, collect from the licensee or lessee of any such licence, contract or lease of the nature specified in column (2) of the Table below, a sum equal to the percentage, specified in the corresponding entry in column (3) of the said Table, of such amount as income-tax:

In Nutshell, can you give.
I understand its not applicable to manufacturer but other are quoting with different interpretation

Can we have the draft as well as the ammended section 206c to make it more clear.

Can we have the act as well as the ammended section. is this applicable on all goods..

Section 206C (1D) as amended by Finance Act 2016 is as below:

[(1D) Every person, being a seller, who receives any amount in cash as consideration for sale of bullion or jewellery or any other goods (other than bullion or jewellery) or providing any service, shall, at the time of receipt of such amount in cash, collect from the buyer, a sum equal to one per cent of sale consideration as income-tax, if such consideration,

A new sub section 206C (1E) is also inserted w.e.f 1 June 2016 which provides:

“(1E) Nothing contained in sub-section (1D) in relation to sale of any goods (other than bullion or jewellery) or providing any service shall apply to such class of buyers who fulfil such conditions, as may be prescribed.”;

But Nothing has been prescribed so far as till date by the Government under this section.