All about TCS on sale of Goods [newly inserted Section 206C(1H)] effective from 01.10.2020 Introduction to TCS (Tax collection at source) Tax Collected at Source (TCS) is the tax payable by a seller which he bills on to the from the buyer at the time of sale and is payable into the Government Treasury on receipt of money from the buyer. The rate of TCS is different for goods specified under different categories. Section 206C of the Income Tax Act specifies th..
There are close to 32 items of income/payments on which tax is deductible at source (TDS) and 11 items on which tax has to be collected at source (TCS). However, this position has now been changed after the introduction of a new sub-section (1H) in Section 206C of the Income Tax Act vide Finance Act, 2020 which has come into effect from 01.10.2020. The new provision stipulates that all goods which were not covered by any clause of erstwhile Section 206 shall now be subject t..
TCS on sale of any goods- Section 206C (1H) of Income Tax Act,1961 Tax Collected at Source (TCS) is the tax payable by a seller which he collects from the buyer. The rate of TCS is different for goods specified under different categories. Section 206C of the Income Tax Act, 1961 specifies the categories of goods on which seller has to collect tax from the purchasers. Sub-section (1H) has been inserted in Section 206C by Finance Act, 2020 for collection of TCS by the sell..
With effect from 1st of October 2020, Finance Act 2020, introduced a new provision - under Section 206C (1H), regarding the Tax Collected at Source (TCS) on sale of Goods. To whom it is it applicable: This section is applicable to the sellers of goods, whose turnover during the preceding FY exceeded Rs.10 Crores. Scenario,wherethe section comes in: Only on the event of sale of goods only ..
Tax collected at Source on sale of Goods effective from 01st October 2020 Due date for filing Annual return and audit report under GST has been extended, tax payer got some relaxation however new compliance requirement has been introduced which is applicable from 01st October 2020 i.e. tax to be collected at source on sale of goods. Vide Finance Bill, 2020 sub-section (1H) of section 206C of the Income Tax Act has been introduced which has proposed for tax collection at ..
There are reports in certain sections of media wherein certain doubts have been raised regarding the applicability of the provisions relating to Tax Collection at Source (TCS) on certain goods introduced vide Finance Act, 2020. This press note is being issued to clarify those doubts about the applicability of these provisions. Finance Act, 2020 amended provisions relating to TCS with effect from 1st October, 2020 to provide that seller of goods shall collect tax @ 0.1 per cent (0.07..
Introduction:- Section 206C of the Income Tax Act provides for the collection of Tax at Source In order to widen and deepen the tax, a new sub-section (1H) is inserted with effect from 1st October 2020. Who is Liable to collect TCS? TCS is required to be collected by a Seller on consideration received from a buyer for the sale of any Goods. Seller:- means a person whose turnover in the financial year immediately p..
Arjun (Fictional Character): Krishna, what is the new provision of TCS under the Income Tax Act on the sale of Goods? Krishna(Fictional Character): Arjuna, an amendment has been made in section 206C (1H) of Income Tax, which is as follows: (1H) Every person, being a seller, who receives any amount as consideration for the sale of any goods of the value or aggregate of such value exceeding fifty lakh rupees in any previous year, other than the goods ..
TCS is the tax collected by the seller when goods are being sold to the buyer. Section 206C of the Income Tax Act lays down the terms and conditions under which tax has to be collected. However, an amendment has been made under Section 206C (1H) which will applicable from 1.10.2020 onwards. Let us uncover some of the terms of the said ammendment. Arjun (Fictional Character): Krishna, what is the amendment applicability of TCS under section 206C..
e-TDS/TCS return has to be prepared in the data format issued by e-Filing Administrator. This is available on the Income Tax Department website (www.incometaxindia.gov.in) and NSDL-TIN website (www.tin-nsdl.com). There is a validation software (File Validation Utility) available along with the data structure which should be used to validate the data structure of the e-TDS/TCS return prepared. The e-TDS/TCS return should have following features: e-TDS/TCS return file should b..
MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) NOTIFICATION New Delhi, the 24th July, 2020 INCOME-TAX G.S.R. 464(E). In exercise of the powers conferred by section 197 and 206C read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:- 1. Sho..