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TCS matter

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Balbhagwan Pandey

34 Points Posted on 05 October 2020

I ve supply to client 62. Lacs in single supply now TCS will on 62 Lacs or 12 lacs

Replies (5)

Quick Summary

This discussion clarifies the applicability of Tax Collected at Source (TCS) on a supply valued at 62 Lakhs. TCS is generally applicable only if your previous financial year's turnover exceeded 10 Crores. If this condition is met, TCS is collected on the value exceeding 50 Lakhs in the current financial year, starting from 1st October 2020. In this specific case, assuming no prior supplies to the same buyer in the current year, TCS would only be applicable on 12 Lakhs.

Sagar Patel

Tax and Business Consultant

11616 Points Posted on 05 October 2020

TCS is applicable to you only when your Turnover of last financial year is more than 10 crores.

If it's more than 10 Crores than in current year i.e w.e.f 1 st October, 2020 you are liable to collect TCS on value exceeding Rs. 50 lakh. (this limit we have to check on whole year basis)

In your case Required to collect tax on Rs. 12 Lakhs Only (Assume there is no Supply to this buyer in current year - earlier month's)