As per the Finance Act, 2017 (FA2017) with effect from (wef) 1 April 2017 the provision of collection of tax at source (TCS) upon sale in cash of inter-alia bullion, jewellery among others is omitted.
Accordingly, there is no liability on the seller to collect tax at source upon receiving cash consideration on sale of bullion, jewellery irrespective of the amount of consideration.
Separately, here it is relevant to note that Section 269ST has been introduced in FA2017 wef 1 April 2017 providing for a restriction on acceptance of cash amounting to INR 200,000 or more inter-alia :- in aggregate from a person in a day or in respect of a single transaction
contravention of the provions of Section 269ST may attract penalty equivalent to the amount involved in the contravention.
Advisable- 1. No TCS required on sale of bullion, jewellery 2. Don't accept cash consideration of INR 200,000 or more in a single day from a person 3. Accept part payment in cash of less than INR 200,000 and balance through prescribed electronic modes through bank.
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