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TCS u/S 206(1H)

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Deepak Rajbhoj

31 Points Posted on 30 September 2020

Dear all,
I have one query regarding the upcoming tcs provision. Till now in all TCS cases, seller was collecting the tcs at the time of billing itself by including TCS amount in Tax invoice. But in this new provision TCS is applicable on receipt basis. It means whenever we receive amount , we have to collect TCS. So my question here is Unless we have added TCS value in Tax invoice, How are we going to recover TCS from buyer. This problem will mainly arise when we receive payments for sales executed before 1.10.20. Please through some light on this practical issue. Thanks..

Deepak Rajbhoj
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Quick Summary

This discussion addresses a practical challenge with the new TCS u/S 206(1H) provision, which applies on a receipt basis rather than at the time of billing. The main concern is how sellers can recover TCS from buyers for sales made before 1st October 2020, when TCS wasn't initially included in the tax invoice. A solution suggested is issuing debit notes to cover the TCS amount. The thread also briefly touches upon whether this TCS provision is applicable to job work scenarios.