TCS ON SALES OF GOODS

This discussion clarifies the rules for charging Tax Collected at Source (TCS) on the sale of goods, effective from April 1, 2021. The key point of confusion is when the ₹50 lakh threshold applies for the financial year 2021-22. TCS should be charged if sales crossed ₹50 lakhs in FY 20-21 or if sales exceed ₹50 lakhs in FY 21-22. For sales exceeding ₹5 crore, TCS at 0.1% applies, but the applicability also depends on turnover and individual customer sales values.