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Tcs

Deepak Gupta (Chartered Accountant) (33 Points)

16 July 2012

Dear All,

I have a question regarding applicability of TCS. Please advice.

For eg. If X is a jeweller and sells jewellery of Rs.6 Lakhs to his customer Y. Y pays him Rs. 1 Lakh cash and balance amount in cheque. Now my question is whether TCS will be collected @ 1% on cash component or on the total sales value.

Please advice ASAP.

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12 Replies

CA Nirav Pandya (Assisting to manager accounts) (44 Points)
Replied 16 July 2012

Dear, TCS will be collected on whole amount of transection. Moreover TCS is not applicable on jwels.For more details visit following link:

https://www.simpletaxindia.net/2008/12/tax-collection-at-sourcetcs-provisions.html

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Parihar Gopal (Corporate Taxation ) (392 Points)
Replied 16 July 2012

nothing will be collected in regards TCS because consideration paid in cash is not more than Rs 500000.00

1 Like

Deepak Gupta (Chartered Accountant) (33 Points)
Replied 16 July 2012

Dear Nirav,

Plz follow the below mentioned link..

https://www.simpletaxindia.net/2012/03/changes-in-tcs-tax-collection-at-source.html

TCS is applicable on jewellery and bullion

Thanx

Deepak Gupta (Chartered Accountant) (33 Points)
Replied 16 July 2012

Dear Parihar,

Thanx for replying...but i would like you to concentrate on a below mentioned statement

It has been been written that the seller of bullion and jewellery shall, at the time of receipt of such amount in cash, collect tax at the rate of 1% of sale consideration from every buyer of bullion and jewellery, if sale consideration exceeds two lakh rupees.

What does such amount of cash means..??

Parihar Gopal (Corporate Taxation ) (392 Points)
Replied 16 July 2012

dear Deapk,

cash means , amount received in cash like u/s 40 A(3) Cash payment Exceeding Rs 20000.00, second thing the FM has roll back the the TCS proposed in 2012 Budget for purchse of Jewellrey in cash for Exceeding Rs 200000. & now the limit is upto rs 500000.00

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Deepak Gupta (Chartered Accountant) (33 Points)
Replied 16 July 2012

Parihar,

Is the limit of Rs. 5 Lakhs for both sale of Jewellery and bullion

Parihar Gopal (Corporate Taxation ) (392 Points)
Replied 16 July 2012

yes sir in both case it is Rs 500000.00

Deepak Gupta (Chartered Accountant) (33 Points)
Replied 16 July 2012

Thank you Parihar..

It means when cash sales of jewellery / bullion exceeds Rs. 5 Lakhs then only TCS will be attracted.

CA.Varalakshmi.M (Manager-Finance) (482 Points)
Replied 16 July 2012

No.in case of cash sale of jewellery only the limit is Rs. 5 lakh.

In case of bullion it is same as earlier.i.e Rs.2 Lakh

Deepak Gupta (Chartered Accountant) (33 Points)
Replied 17 July 2012

thank you M. Varalakshmi..

Can you advice me something against my query..

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Parihar Gopal (Corporate Taxation ) (392 Points)
Replied 17 July 2012

sorry deepak ,

m varalaksmi is right roll of tcs on in Jewellary only not in bullion

Hardik Ratanghayra (Employee) (26 Points)
Replied 30 July 2012

Does anyone khow the provisions for period of limitation for issue of show cause notice 206 for issue of TCS ?? Please answer along with source of it...........................................