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TDS on Timer

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CA Article

37 Points Posted on 25 May 2021

Dear Sir,

My friend purchased Timer from forest department. He is unregister detaler under GST. He don't have TAN.

The forest department told to him to pay TCS and given challan No.281. in this challan their TAN number quoted. GST challan also given to him and quoted their ( Forest department) GST No in GST challan. is it right or not please clarify

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Quick Summary

This discussion clarifies the tax implications when purchasing timber from a forest department. It confirms that Tax Collected at Source (TCS) is applicable on timber sales, even if the buyer is unregistered under GST and lacks a TAN. The forest department correctly issued Challan 281 for TCS and a GST challan quoting their GST number. The buyer can claim the TCS paid as a refund. Furthermore, timber is not exempt from GST, so GST will also be charged.