CA Jugal K Parmar

Applicability

⇐ Every “seller”

“Seller” as per Explanation (C) to section 206C means

– Central Government/’ Any local authority/’ corporation or authority established by or under a Central, State or Provincial Act OR Any Company OR Firm OR Co – operative Society OR An Individual or HUF who is liable to audit u/’s. 44AB in preceding Financial Year corresponding to year in which transaction specified u/’s. 206C takes place

Section 206C(1D)

If Invoice Value exceeds specified amount, TCS @ applicable rate shall be collect by person who receives any amount/’part of amount in cash as consideration.

Nature of TransactionIf, Sale consideration
exceeds
TCS collectible on SALE
CONSIDERATION at specified rate
Sale of Bullion2 Lac1%
Sale of Jewellery5 Lac1%
Other goods or any service2 Lac1%

Example:

Mr. A sells goods to Mr. B worth Rs. 5,00,000 (Invoice Value) on 10.06.2016 and receives Rs. 4,95,000 by cheque on 11.06.2016 and Rs. 5,000 by cash on 12.06.2016, Mr. A requires to collect TCS @ 1% on Rs. 5,00,000.

⇐ Gold jewellery and bullions were already covered since year 2012.

⇐ Applicable on Single Bill.

⇐ If single party is having multiple bills each less than 2 Lac, then any amount collected in cash will not be liable to TCS.

⇐ If any payment is liable to TDS, then there will be no TCS under this section for the same payment.

⇐ Even a patient making payment to any hospital is also covered in this rule. Even government hospital is also liable to collect TCS from patients.

(Author can be reached at jugalkparmar@gmail.com)

Posted Under

Category : Income Tax (20861)
Type : Articles (10799)
Tags : Budget 2016 (434) tcs (166)
  • ANIL Dhawan

    What will be in the case of telecom operator dealer or distributor as their sale are usually high in day to day transactions but TDS is already deducted from Operator side

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