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Tcs on sale of goods

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Harmehar Kaur

84 Points Posted on 05 April 2021

if in previous years ie fy 20 -21 if one of the party sale exceeds 50 lakh and we colleceted tcs on it , now from 1 april 2021 if we are giving sale in 2 april for 50000 do we need to collect tcs , seeing its previous years sales as exceeded 50 lakh

Replies (4)

Quick Summary

This discussion clarifies the rules for Tax Collected at Source (TCS) on the sale of goods. The key point is that the ₹50 lakh threshold for TCS applies annually. If a seller anticipates exceeding this limit within the financial year, it's advisable to start collecting TCS proactively, even for smaller transactions, to ensure compliance. Referencing Board Circular 17/2020 provides further detail on these regulations.

Ankit Neema

2742 Points Posted on 05 April 2021

No need to collect tcs

CA. Sourav Sarkar

Chartered Accountant

24588 Points Posted on 05 April 2021

If turnover exceeds 50 lakhs then TCS should be collected

Mujeeb Doi

309 Points Posted on 05 April 2021

No, the limit of such sales needs to be considered every year, but if you already know that it is going to exceed 50 lakhs in the year, then it will be a good accounting and compliance practice to provide for TCS