TCS COLLECTION ON SALE OF HEAVY VEHICLE

1) Query is bit confusing because all are customers here. 2) Assuming that the vehicle is purchased for business purpose, no depreciation benefit can be claimed, as cash has been paid exceeding ₹10,000. 3) Tax to be collected from the buyer of the vehicle on the total invoice value of the seller. 4) Seller of the vehicle is liable to pay penalty u/s 271DA for receiving cash of more than 2 lacs (penalty = amount of cash received). It is immaterial whether cash is received during different FYs, as long as it pertains to a single transaction, in this case, purchase of a vehicle, penalty will be attracted.