CBDT after representation from various stake holders has issued Circular No. 23/2016 dated 24.06.2016 regarding clarity of applicability of Section 206C(1D) on transactions where sale consideration received is partly in cash and partly in cheque.
|Whether Tax Collection at Source under section 206C(1D) at the rate of 1% will apply in cases where the sale consideration received is partly in cash and partly in cheque and the cash receipt is less than Rs. 2 lac.||No. TCS will not be levied if the cash receipt does not exceed Rs. 2 lac, even if the sale consideration is more than Rs. 2 lac.|
|Whether TCS u/s. 206C(1D) will apply only to cash component or on whole sale consideration.||Under Section 206C(1D) TCS is required to be collected on cash component of the sale consideration only and not on whole of the sale consideration.|
|Particulars||Scenario 1||Scenario 2||Scenario 3|
|Applicability of TCS u/s. 206C(1D)||NoTCS||TCS @ 1% on 3,00,00||NoTCS|
CAJugal K. Parmar