TCS applicability on electricity

As per the provision introduced in the Finance Act 2020, if the seller of any goods whose turnover in the immediately preceding FY exceeds Rs.10 Crores, he is liable to collect TCS from the buyer.

TCS is deducted from a person when the receipts of sale consideration are more than Rs. 50 lakhs from that person. TCS is applicable with effect from 1st October 2020.

The rate of TCS on goods u/s 206C is 0.1% of receipts above Rs. 50,00,000. 

If the turnover of JUSCO electricity is more than 10 Crs in preceding year, it will collect TCS from customers having more than 50 lakhs consumption.