Quick Summary
Smt. Nirmala Sitharaman Honble Minister of Finance Government of India New Delhi 110001 Respected Madam, Subject: Request for granting relief from provisions of Tax Collection at Source (TCS) under section 206C(1H) of the Income Tax Act, 1961 1. The Finance Act, 2020 has made an amendme
Daily Limit Reached
You have reached your daily limit of 2 Free News
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Community
- Daily E-Newsletter
- Unlimited News Access
- Profile Visitors
- Link Social Profiles
- Featured Job Posts
- Pro Badge
- Expert GST Guidance
- Unlimited Forum Replies
- Download Content in PDF
BEST VALUE
2 YEAR PLAN
3,499
(Excl. of GST ₹629)
1 YEAR PLAN
1,999
(Excl. of GST ₹359)
3 MONTHS PLAN
999
(Excl of GST ₹179)
View all CCI PRO benfits
Already a PRO member? Login here for an ad-free experience.
FAQ :
Section 206C(1H) requires sellers to collect Tax at Source (TCS) at 0.1% on sale consideration exceeding fifty lakh rupees in a financial year, effective from October 1, 2020.
Businesses facing losses cannot apply for a Nil or lower TCS certificate under sub-section (9) of Section 206C, leading to fund blockage and subsequent refund claims.
Yes, there is confusion as the provision is triggered on the receipt of sale consideration, potentially including amounts outstanding from sales made before October 1, 2020.
It is argued that GST should not be included as it is a separate tax levied by the government, and including it would amount to dual taxation.
Requests include amending Section 206C(9) to allow lower TCS certificates, excluding B2B transactions, clarifying applicability to pre-October 1, 2020 sales, and excluding GST from sale consideration.
It is proposed that B2B (business-to-business) transactions be carved out from the ambit of TCS under Section 206C(1H) to avoid multiple levels of tax collection.
CAclubindia
