TCS on Sale of Goods Section 206C(1H)- Income Tax Act, 1961

FY 2019-20, T.O. = Rs.11cr & single buyer T.O. is Rs.1cr

FY 2020-21, T.O. = Rs.12cr & single buyer T.O. is Rs.25 lakh till 30 Sept 2020.

From 1st Oct 2020 T.O. is Rs.20 lakh 

My question is TCS applicable for above case???

 

 

Replies (2)
Quick Summary
This discussion clarifies the applicability of Tax Collected at Source (TCS) under Section 206C(1H) of the Income Tax Act, 1961. It explains that TCS on the sale of goods becomes applicable once a single buyer's turnover exceeds Rs. 50 lakhs in a financial year. The example provided shows that until the threshold is crossed, TCS is not required, but it will be collected on all subsequent receipts from that buyer once the limit is breached.

TCS would become applicable when the turnover of the single buyer from 1.4.20 would cross 50 lakhs.

Till now the turnover has just been 45 lakhs.

So TCS would become applicable once the turnover from this single buyer would cross 50 Lakhs and subsequently TCS would required to be collected on all the receipts from such buyer.
Agree with Mili Haria ji...

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