Dear Members,
is TCS applicable on sale of groundnut peanuts?
Thanks in advance
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TCS APPLICABILITY on PEANUTS
Replies (1)
| TCS applicability on peanuts depends on the specific TCS section being considered: 1. Section 206C(1) — TCS on Specific Goods: This section covers TCS on sale of: alcoholic liquor, tendu leaves, timber, forest produce, scrap, minerals. PEANUTS (groundnuts) are NOT listed here — no TCS under Section 206C(1) on peanuts. 2. Section 206C(1H) — TCS on Sale of Goods: - If the seller's turnover exceeded Rs. 10 crore in the preceding FY, TCS @ 0.1% is applicable on receipts from a single buyer exceeding Rs. 50 lakh in a year - This applies to ALL goods including peanuts - So: Peanut seller with turnover > Rs. 10 crore → Must collect TCS @ 0.1% on receipts beyond Rs. 50 lakh from each buyer 3. Agricultural Produce Exemption? There is NO blanket exemption for agricultural produce from Section 206C(1H). The only exemption is for exports — if peanuts are exported, no TCS under 206C(1H) on the export sale. 4. Interaction with Section 194Q: If the buyer of peanuts deducts TDS under Section 194Q (buyer's turnover > Rs. 10 crore, purchase > Rs. 50 lakh), the seller does NOT need to collect TCS under 206C(1H) — only one of the two applies. 5. Practical Summary: - Small seller (turnover < Rs. 10 crore): No TCS obligation on peanut sales - Large seller (turnover > Rs. 10 crore): TCS @ 0.1% on receipts from a buyer beyond Rs. 50 lakh - If buyer already deducting TDS u/s 194Q: No TCS needed |
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