Dear Sir,
As per the amended provisions of TCS by Finance Act 2016 the provisions read as follows.
Section 206C
(1D) Every person, being a seller, who receives any amount in cash as consideration for sale of bullion or jewellery, 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,—
(i) for bullion, exceeds two hundred thousand rupees; or
(ii) for jewellery, exceeds five hundred thousand rupees.
(iii) for any goods other than those mentioned in clauses (i) and (ii) or any service exceeds two hundred thousand rupees.
(1F) Every person being a seller who receives any amount as consideration for sale of a motor vehicle of the value exceeding ten lakh rupees, shall at the time of receipt of such amount, collect from the buyer, a sum equal to one percent of the sale consideration as income tax.
1. If the vehicle value is more than 10 lakh then TCS is mandatory irrespective of the fact that the amount is received in cash or cheques.
2. If the vehicle value is more than 2 lakh and any part of the consideration is in cash then TCS will apply.
Are the above points in line with the provisions?
OR is it such that TCS will apply in case of vehicle dealers only in case of vehicles exceeding Rs. 10 lakh and not in any other case.
Kindly explain interpretation of Sec 206(1D)(iii)
CAclubindia
