TCS on Sale of Goods: When to Deduct?

TCS ON sale of good

Himanshu Agarwal

Proprietor

142 Points Posted on 07 April 2021

Mr A was deducting TCS of MR B in FY 2020-21 as sale is more than 50L
Now For FY 2021-22 he need to deduct TCS from first bill i.e from Rs Zero or after crossing 50 L in FY 2021-22 also

Replies (4)

Quick Summary

This discussion clarifies the rules for Tax Collected at Source (TCS) on the sale of goods. TCS is applicable when the sale consideration received crosses the threshold of ₹50 lakh in a financial year, provided the turnover criteria for the collector are also met. The key question is whether TCS should be deducted from the very first bill of the new financial year or only after the ₹50 lakh limit is breached again.

CA. Sourav Sarkar

Chartered Accountant

16188 Points Posted on 07 April 2021

After crossing 50L TCS should be collected

CMA Poornima Madhava

CMA

9106 Points Posted on 07 April 2021

TCS is applicable once the sale consideration received crosses the limit of Rs.50 lacs in a year, provided the turnover (of collector) criterion is also satisfied.