TCS u/s,206C(1H) applicable for goods sale between branches having same PAN

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Tax consultant
43 Points Posted on 15 September 2020

Dear Experts,

Good Evening!!

Kindly clarify whether TCS @ 0.075% is applicable on sale of goods w.e.f. 01.10.2020 in between branches having same single PAN but different GST numbers in various states.

And the whether threshold limits of Rs.50 Lakh is calculated on the basis of total sales or total receipts against the sales from 1st April 2019 to 30.09.2020?

Thanks & Regards: Murugesan M

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On 15 September 2020 at 17:19 Report
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Quick Summary
This discussion clarifies the applicability of TCS under Section 206C(1H) for goods sales between branches that share the same PAN but have different GST numbers. It confirms that TCS is generally not applicable in such cases because the PAN of the buyer and seller is the same. The threshold limit of Rs. 50 Lakh for TCS collection is calculated based on receipts from the date of applicability (1st October 2020) onwards, not on total sales or receipts prior to that date.

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Chartered Accountant
4524 Points Posted on 15 September 2020
1.Yes, TCS needed to be collected on interstate branch transfer as under GST law, in case of interstate transfer of goods between the branches, it is to be treated as sales and duly sale invoice is generated by the issuing branch to receipient branch.
2.Threshold limit is to be calculated on the basis of total receipt post the date of applicability i. e. 01.10.2020 against the sale till date.
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On 15 September 2020 at 18:09
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Senior auditor
110 Points Posted on 15 September 2020
TCS is not applicable on Inter-Branch Stock Transfers, as PAN of both the customer and supplier is same.
The Finance Bill 2020 had intended to make this section effective from 1st April 2020 but the Finance Act 2020 has delayed the applicability to 1st October 2020. Hence, receipts up to 30th Sep 2020 are out of the purview of this section. and applicability of this section,sales should be verify from 1sr April 2020 and tcs should be collect from 1st October 2020 on the receipt.
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On 15 September 2020 at 23:24

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