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TCS under 206C(1F)

TDS 487 views 1 replies

Will the TCS be deducted on GST Amount Collected or will be only on Amount of Taxable Value, Since Under Section 206C(1F), the seller must collect tax on the "sale consideration". The legal interpretation is that "consideration" is the total amount the buyer is required to pay to the seller to acquire the vehicle. Since the buyer cannot acquire the vehicle without paying the GST, the GST becomes part of the consideration.

Replies (1)

For motor vehicle sales exceeding ₹10 lakh, TCS under Section 206C(1F) must be collected on the full invoice value, including GST, because the law uses the term “sale consideration” and does not exclude GST from its scope. Excluding GST may result in short-collection consequences.

 
 


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