Section 206C of the income tax Act has been proposed to be amended by Finance Bill 2020. Section 206C deals with TCS (Tax Collected at Source). Budget 2020 has proposed to insert Sub-Section 1G and 1H to Section 206C to expand the Scope of TCS to TCS on foreign remittance through Liberalised Remittance Scheme (LRS) and on selling of overseas tour package as well as TCS on sale of goods over a limit. Article explains the newly inserted provisions related to TCS.
Read Bare Action Provisions related to TCS– TCS: Remittance through LRS, foreign tour package sell & sale of goods
| Nature of Transaction | Who will collect | When TCS will be collected | Prescribed Limit | Non – Applica-bility | TCS Rate | Remarks |
| Sub-section (1G)
a) remittance out of India under the LRS of RBI |
An Authorised Dealer | At the time of receipt of the amount, or At the time of debiting the amount payable Whichever is earlier | Seven lakh or more in a FY | 1. If the buyer is liable to deduct TDS under any other provisions and has deducted
2. If a buyer is CG, SG, an embassy, a high commission, a legation, a commission, a consulate, the trade represen-tation of a foreign state, a local authority or any other person as notified by CG |
5% | The benefit of sub-section 6A is not available |
| Sub-section (1G)
b) Overseas tour program package |
Seller of the package | NA | 5% | The benefit of sub-section 6A is not available | ||
| Sub-section (1H) Sale of any goods (except goods on which TCS applicable specifically) | Seller of any goods whose turnover in the previous year exceed ten crore rupees | At the time of receipt of any amount as consideration for the sale of such goods | Exceeding 50 Lakh in a FY | 1. If the buyer is liable to deduct TDS under any other provisions and has deducted
2. If buyer is CG, SG, an embassy, a high commission, a legation, a commission, a consulate, the trade represen-tation of a foreign state, a local authority or any other person as notified by CG |
0.1% | 1. The benefit of sub-section 6A is not available
2. In the case of non-availabilty of PAN or Aadhar of the buyer, TCS rate will be 1% |
Author Bio
whether TCS would be applicable on Works Contract?
Whether prescribed limit of Rs 50,00,000 on sale of goods is Individual Customer wise or Consolidate company wise.
Hi
Can any one explain below for insertion of section 206(1H) TCS on sale of goods-
1. compliance related to the TCS (remittance due date and returns)
2. Whether credits will be available in 26AS for TCS paid to seller.
TCS will be collected on the amount before GST.
will this TCS @0.1% be applicable on sale of services also? can someone clarify this pls?
Whether TCS is to be collected on Export sales?
Hi
TCS will remain same on scrap ? 1% ?
Thanks
Anju
Whether TCS would be applicable on the amount inclusive of GST or exclusive of GST?
Any views?