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

It is clear that that TCS to be collected on any transaction constituting over 2 lacs and any amount is received in cash. The whole transaction becomes taxable as "any part" is written. The question is if a persion has many transactions and a single transaction does not exeeds rs. 2 lacs. then what ? is section 206 c1(d) is attracted ?  

Thanks for posting the text of the section Mr Manoj.

 Does 1E refer to TDS cases?I hope CBDT comes out with some clarification soon.

In my opinion, if the full payment of single invoice in  received in cash, only than the provisions of section 206C clause (1D) will be applicabel, if out of single invoice exceeding Rs. 2 lac, say 2.5 lac, Rs.2.4 Lac is received through RTGS and balance of Rs.10000/= in cash, in that event above provison will not be applicable, however if total payment of cash during one FY from a party is received in cash in that event AIR READ WITHB RULE 114 B IS TO BE SUBMITTED EVERY YEAR BY 31ST OF MAY..

Mr naveen I am also asking the same  point at various stage

A vey welcome clarification has been issued by CBDT on TCS on Cash Sale exceeding Rs. 2 lakhs.

CBDT vide Circular No. 23/2016 dt. 24 June 2016 has clarified on FAQs of stakeholders reg. scope of the provisions and the procedure to be followed in case of the amended provisions of Section 206C of the Income Tax Act, as under:

CBDT Circular No. 23/2016 dt. 24 June 2016

In order to curb the cash economy, Finance Act 2016 has amended section 206C of the Income-tax Act to provide that the seller shall collect tax at the rate of one per cent from the purchaser on sale in cash of certain goods or provision of services exceeding two lakh rupees. Subsequent to the amendment, a number of representations were received from various stakeholders with regard to the scope of the provisions and the procedure to be followed in case of the amended provisions of Section 206C of the Act. The Board, after examining the representations of the stakeholders, issued FAQs vide circular.No.22/2016 dated 8th June, 2016. The Board has further decided to clarify the issue as regards applicability of the provisions relating to levy of TCS where the sale consideration received is partly in cash and partly in cheque by issue of an addendum to the above circular in the form of question and answer as under:

Question 1: Whether tax collection at source under section 206C(1D) at the rate of 1% will apply in cases where the sale consideration received is partly in cash and partly in cheque and the cash receipt is less than two lakh rupees.

Answer : No. Tax collection at source will not be levied if the cash receipt does not exceed two lakh rupees even if the sale consideration exceeds two lakh rupees.

Illustration: Goods worth Rs. 5 lakhs is sold for which the consideration amounting to Rs.4 lakhs has been received in cheque and Rs.1 lakh has been received in cash. As the cash receipt does not exceed Rs.2 lakh, no tax is required to be collected at source as per section 206C (1D).

Question 2: Whether tax collection at source under section 206C (1D) will apply only to cash component or in respect of whole of sales consideration.

Answer: Under section 206C (1D), the tax is required to be collected at source on cash component of the sales consideration and not on the whole of sales consideration.

Illustration: Goods worth Rs. 5 lakhs is sold for which the consideration amounting to Rs.2 lakhs has been received in cheque and Rs.3 lakh has been received in cash. Tax is required to be collected under section 206C (1 D) only on cash receipt of Rs.3 lakhs and not on the whole of sales consideration of Rs.5 lakh.

Amend., copy Dt:24.06.2016( Issued by Govt of India/ CBDT/Ministry of Finance) attached 

hey All,

can anyone suggest me the services on which this section apply.