To curb the flow of unaccounted money in the bullion & jewellery trade, the Finance Bill proposes the collection of tax at source (TCS) by the seller at the rate of 1 per cent of the sale amount from the buyer for all cash transactions exceeding Rs.2 lakh. Responding to the representations made by the jewellery industry that this would cause undue hardship, I propose to raise the threshold limit for TCS on cash purchases of jewellery to Rs.5 lakh from the present Rs.2 lakh. The threshold limit for TCS on cash purchase of bullion shall be retained at Rs.2 lakh. However, it is being clarified that bullion will not include any coin or other article weighing 10 gms or less.
Extract From FM Budget speech dated 7-5-2012 on Finance Bill, 2012
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Sir,
I have well understood the norms of TCS for bullion and jewellery. But still i have 1 query…
As fas as i have understood TCS is charged on SINGLE ENTRY. So, if somebody wants to buy gold jewellery worth Rs. 15 lakhs on same day and he wants to prepare Invoices in the name of 3-4 persons of his own family member (Residence address being the same). Will this be considered as SINGLE ENTRY ? Should TCS be applied or not ?