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TCS applicability on electricity

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Komal Kumari

47 Points Posted on 06 November 2021

is TCS applicable on jusco electricity or not??

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Quick Summary

This discussion clarifies the applicability of Tax Collected at Source (TCS) on electricity bills, particularly concerning providers like Jusco. According to the Finance Act 2020, TCS is applicable if a seller's turnover exceeds Rs. 10 Crores in the previous financial year. For buyers, TCS is collected on sale consideration exceeding Rs. 50 lakhs, at a rate of 0.1%, effective from October 1st, 2020. Therefore, if Jusco's electricity turnover surpasses Rs. 10 Crores, they may collect TCS from customers whose consumption exceeds Rs. 50 lakhs.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

212548 Points Posted on 06 November 2021

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.