Below attached file provides analysis of Section 206C(1H) of Income Tax Act,1961.
Kindly go through the analysis and provide your valuable insights.
- In Case PAN not furnished then 1% rate applicable.
- This Provision shall not apply in case when Buyer is liable to deduct TDS on goods purchased by him.
- Here Seller shall mean : A person whose total Sales > 10 Crores during FY immediately preceding the FY in which Sales is carried out. Eg : Sales of 20-21. Turnover of 19-20 to be
- Turnover Shall mean Turnover of Both “Goods & Services”
- For threshold limit of 50 Lakhs Per Customer, Turnover relating to Services need not to be
- TCS cannot be reversed in case of Issuance of Credit Note. Buyer can take credit of same in Advance tax liability.
- TCS has to be collected on Amount of Sale Including GST.
- TCS would not be required to be collected on Sales made prior to 1st Oct 2020 but TCS would be collected on Amount outstanding as on 30th Sep 2020 of individual customer in case Turnover exceeds 50 Lakhs .