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TCS u/s 206C from 1st April 2022

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Aniket Kumar

98 Points Posted on 31 March 2022

From 1st April 2022

1. TCS is to be started collecting after turnover exceeds 50 lakhs in 2022-23 for a particular party?

OR

2. For those parties from whom TCS was already being collected in 20-21, for them do we need to start collecting from 1st April 2022 itself?

Replies (2)

Quick Summary

This discussion clarifies the implementation of TCS under Section 206C from April 1st, 2022. It addresses whether the £50 lakh turnover threshold for collecting TCS applies from the start of the financial year or if it's based on previous collection history. The key point is that TCS is collected on consideration received exceeding £50 lakhs in a financial year, with the initial £50 lakhs being exempt.

CA Puja Sharma

Chartered Accountant

3528 Points Posted on 01 April 2022

TC to be collected from customers when you have received more than Rs. 50 Lakhs in consideration against the sale or as an advance against the sale during a Financial Year.

The limit of Rs. 50 Lakhs is applicable for every FY. The TCS is not levied on the first Rs. 50 lakhs collection in the financial year