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TCS For FY 20-21 End & TCS For FY 21-22 Start- Very Important

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Action Required For TCS On Sale Of Goods For Financial Year 2020-21

Note- TCS was made applicable to those whose FY 19-20 Turnover was Crossing 10 cr

1. In case, you are liable to collect TCS under Income Tax for sales of goods, ensure to pay TCS by 7th April 2021  for Q4. The due date for TCS return is 15-5-2021

2 Also check your books of Accounts , From 1-10-2020, If you have not collected or short collected then You need to Reconcile books and Pay the difference before 7th April 2021 and File TCS return before 15-5-2021

Action required for TCS on Sale of Goods for  Financial Year 2021-22

Note – TCS will be applicable  to those whose FY 20-21 Turnover was Crossing 10 cr

1) The rate of TCS is increased from 0.075% to 0.1% with effect from 1st April 2021 for FY 21-22

2) Also, the TCS is not levied on the first Rs. 50 lakhs collection in a financial year 2021-22 .

READ TWICE TO GET IDEA OF WHAT IS WRITTEN

ALSO WE WOULD LIKE TO CONVEY THAT TDS under Section 194Q on purchase of Goods is coming  into effect from 01.07.2021 and same will further complicate TDS Compliance.

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Author Info

CA HARSHIL SHETH
Qualification: CA in Practice
Company: H A SHETH & ASSOCIATES
Location: AHMEDABAD, Gujarat
Articles Published: 85

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27 Comments
  1. SIR, WE HAD COLLECTED TCS WHOSE SALES CROSSED 50 LAKS FOR F.Y.20-21 & IN F.Y.21-22 SHALL WE CONTINUE FOR COLLECT TCS VALUE IN INVOICE OF SAME PARTY. OR WAIT TILL CROSS OF SALE 50 LC OF THAT PARTY?
    PLEASE GUIDE

  2. SIR, WE HAD COLLECTED TCS WHOSE SALES CROSSED 50 LAKS FOR F.Y.20-21 & IN F.Y.21-22 SHALL WE CONTINUE FOR COLLECT TCS VALUE IN INVOICE OF SAME PARTY. OR WAIT TILL CROSS OF SALE 50 LC OF THAT PARTY?
    PLEASE GUIDE

  3. Our Company is charging TCS on sale of goods at the time of realisation through debit note. As on 31.3.21, we are having outstanding in AR. We will collect realisation after 1.7.21 and we have not paid TCS on that. What should be the TCS implication. please clarify

  4. I have Purchase one Vehicle above 13 lakh in FY 2018-2019. but i have not do return as assessment year 2019-2020, But i have Return filled as 2020-2021 assessment and do the TCS recalled FY. 2018-2019 can it got it.

  5. SIR WE COLLECT TCS WHOS SALES CROSS 50 LAKS FOR F.Y.20-21 & IN F.Y.21-22 SHALL WE CONTINUE FOR COLLECT TCS VALUE IN INVOICE OF SAME PARTY. OR WAIT TILL CROSS OF SALE 50 LC OF THAT PARTY
    Please confirm

    1. SIR WE COLLECT TCS WHOS SALES CROSS 50 LAKS FOR F.Y.20-21 & IN F.Y.21-22 SHALL WE CONTINUE FOR COLLECT TCS VALUE IN INVOICE OF SAME PARTY. OR WAIT TILL CROSS OF SALE 50 LC OF THAT PARTY
      Please confirm

    2. Sir our sales in fy 2021 above 10 lacs,wheather we have charge tcs on sale from 01.04.21 onwards on sales from parties who has sale in fy 2021 is above 50 lacs or wait for sale in fy 2122 above 50 lacs condition. please advise

    3. SIR WE COLLECT TCS WHOS SALES CROSS 50 LAKS FOR F.Y.20-21 & IN F.Y.21-22 SHALL WE CONTINUE FOR COLLECT TCS VALUE IN INVOICE OF SAME PARTY. OR WAIT TILL CROSS OF SALE 50 LC OF THAT PARTY

  6. SIR, WE HAD COLLECTED TCS WHOSE SALES CROSSED 50 LAKS FOR F.Y.20-21 & IN F.Y.21-22 SHALL WE CONTINUE FOR COLLECT TCS VALUE IN INVOICE OF SAME PARTY. OR WAIT TILL CROSS OF SALE 50 LC OF THAT PARTY?
    PLEASE GUIDE

  7. SIR WE COLLECT TCS WHOS SALES CROSS 50 LAKS FOR F.Y.20-21 & IN F.Y.21-22 SHALL WE CONTINUE FOR COLLECT TCS VALUE IN INVOICE OF SAME PARTY. OR WAIT TILL CROSS OF SALE 50 LC OF THAT PARTY
    Please confirm

  8. DEAR SIR,
    IF MY SALE IS 20 LAC IN FY 20-21 FOR XYZ PARTY SO WHEN TCS IS APPLICABLE IN YEAR 21-22

  9. My Company FY 2019-2020 turnover was above 10 crore.
    But, FY 2020-2021 turnover is below 10 crore.

    So, for current FY 2021-2022, please confirm, now do we have to comply with TCS on Sale of goods ????

  10. Dear Sir,
    I have a new firm in FY 2020-21 tcs is not applicable for previous year but now in FY 2021-22 my turnover is crossed above 10 crore so tcs is applicable for current year but payment outstanding of FY 2020-21 is comes in FY 2021-22 what action i should be taken in Tcs deduction pls specify

  11. Purchase Return entry pass in current year but select mail document in last year. At the moment last year TCS calculate on bill 0.075% but in current year return bill add 0.1% .How to do?In current year TCS calculate 1% or 0.075% ?

  12. SIR IF WE DEDUCT TCS ON SALE OF GOODS IN F.Y. 20-21 THAN FOR F.Y. 21-22 IF PAYMENT IS MADE ONLY 1LAKH THAN BASE LIMIT 50 LAKH IS APPLICABLE ON 21-22 OR TCS IS DEDUCTED ON 1 LAKH

  13. SIR WE COLLECT TCS WHOS SALES CROSS 50 LAKS FOR F.Y.20-21 & IN F.Y.21-22 SHALL WE CONTINUE FOR COLLECT TCS VALUE IN INVOICE OF SAME PARTY.

  14. SIR F.Y. 20-21 TCS LIABLE PARTY THAN CONTINUE F.Y.21-22 OR EXCEES THE VALUE ABOVE 50 LAC THAN LIABLE ON TCS PLS CLEAR

    1. SIR WE COLLECT TCS WHOS SALES CROSS 50 LAKS FOR F.Y.20-21 & IN F.Y.21-22 SHALL WE CONTINUE FOR COLLECT TCS VALUE IN INVOICE OF SAME PARTY. OR WAIT TILL CROSS OF SALE 50 LC OF THAT PARTY
      Please confirm

  15. SIR IF WE DEDUCT TCS ON SALE OF GOODS IN F.Y. 20-21 THAN FOR F.Y. 21-22 IF PAYMENT IS MADE ONLY 1LAKH THAN BASE LIMIT 50 LAKH IS APPLICABLE ON 21-22 OR TCS IS DEDUCTED ON 1 LAKH

  16. Clarification:
    Our Company is charging TCS on sale of goods at the time of raising Invoices. The provision is to collect TCS on receipt of consideration. There is x amount of outstanding receivables as on 31.03.2020 on which TCS is deducted and paid concessional TCS rate applicable upto 31.03.2021. Please clarify whether Company need to pay differential TCS on outstanding receivable as on 31.03.2021 to comply with the new rate applicable from 01.04.2021.

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