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TCS 206 (1h) applicable to sale to good to SEZ

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meena yadav

90 Points Posted on 17 October 2020

Is TCS applicable on sale of good to SEZ? please clarify

Replies (6)

Quick Summary

This discussion clarifies whether Tax Collected at Source (TCS) under Section 206C(1H) applies to sales made to Special Economic Zones (SEZs). While SEZ supplies are considered exports for indirect tax purposes, they are treated differently for direct tax. The consensus is that TCS provisions do apply to sales to SEZ units and developers, as these are not considered exports outside India for the purpose of this section.

Ajay Kumar Maggidi

Manager - Finance & Accounts

2178 Points Posted on 17 October 2020

Yes.

Sales made to SEZ is not export of goods for the purpose of 206C(1H).
Hence, The Provisions of 206C(1H) applies when sales made to SEZ units/developers.

meena yadav

90 Points Posted on 17 October 2020

Kindly provide supporting of its , which is issue by department

Balbhagwan Pandey

34 Points Posted on 17 October 2020

CIRCULAR issue by cbdt which clarify tcs not applicable for export of goods outside India.

ayusmita

Tax consultant

5895 Points Posted on 17 October 2020

The sale of goods to sez deemed export is not covered under the excusion as the provisions is clearly stated as good other that good export ed out if India so 206C (1h) is not applicable in this condition