TCS -Buyer or Seller ??

1) 10 crores for turnover of last FY & 50 Lakhs for one buyer

2)Next FY 

3)TCS Collect by seller & TDS collect by buyer

4) Actually liabilities arise when increase 50 lakhs, but not deducted or collect now got & payment with interest & file return.

5) IF TCS than always collect with GST (total invoice value) but the matter regarding TDS than TDS will be on Taxable value (without GST)

 

2) Next F.Y. means from F.Y. 24-25( Because in 22-23 not crossing 10 crores & in f.Y. 23-24 cross the line )

3) But who is more responsible to collect or deduct tcs ??? means buyer or seller ??

4) Yes agree but though my client didn't collect or deduct to anyone yet , so now can he calculate like for example if any party cross the 50 Lacs in Aug. 23 &   from there to March 24 party's total transactions 2 crore, so can he calculate 2 crore less 50 lacs or by monthly ??

5) Actually my question was that I think there are 2 ways for tcs, either by Invoicing value & or receiving the payment.

 

1) Yes, FY 2024-25

2) Equally responsible...depend our declaration and agreement 

3) your client cross limit after august-23 and you will start collect/deduct in FY 2024-25.

4) In general practice add on invoices value after cross of 50 lakhs

Ok, Thank You Sir ...........

Section 194Q is apply on import of goods...? 

NO,not applicable on import of goods

@ Mr NARENDRA,

My reply is slightly different....


A) Actually Turnover Limit Matter ??

-->> Yes, it's ten crore. It's Your client (Seller)

b) If it is , then from which year he will have to deduct ( collect ) TCS

-->> from the FY when it's crossed. If it's 23-24 then He (client) will collect TCS.

C) Whether buyer collects the TCS or Seller ??

-->> In this query, Your client to be collect TCS (After crossing 50 lakhs sales to A customer)

D) Till date he has not collected any tcs & not filled any tcs return yet .... So whether he collects the TCS yearly rather monthly over 50 lac transaction ??

-->> No Issues. He can collect TCS consolidated after 50lakhs sale to a customer. Raise a separate Debit Advice to Customer.


E) How to calculate TCS, on invoice amount or against the payment received or paid ??

-->>> It's on Invoice value.

Thank you Raja Sir, But please be clarify about point b) if it crosses the turnover limit in f.y. 23-24 then when to collect tcs ?? in 23-24 or F.Y. 24-25 . ?? 

In my view, when a person's first-time sale aggregate turnover exceeds 10 crores on approx end of March, it becomes practically challenging to deduct or collect TCS on that day. Numerous articles and author books have explicitly mentioned that it should be based on the preceding previous year, not the current year.

Originally posted by : SATYANARAYAN
	Section 194Q is apply on import of goods...?

It's 23-24.

TCS will be collect when the turn over crossed the limit, it's crossed in FY 23-24. So, Collect TCS in the same FY.

Non-applicability of provisions of TCS on the Sale of Goods – TCS on Sale of Goods provisions covered under section 206C(1H) of the Income Tax Act are not applicable under the following circumstances – 1. Total sales/ gross receipts/ turnover from the business of the seller is less than INR 10 Crores in the immediately preceding Financial Year; 2. Value/ aggregate value of sale consideration received from the buyer is less than INR 50 Lakhs; 3. Export of goods out of India; 4. Sale/ supply of services; 5. Sale of goods to Government and local authority;