CA Jugal K Parmar
⇐ Every “seller”
“Seller” as per Explanation (C) to section 206C means
– Central Government/’ Any local authority/’ corporation or authority established by or under a Central, State or Provincial Act OR Any Company OR Firm OR Co – operative Society OR An Individual or HUF who is liable to audit u/’s. 44AB in preceding Financial Year corresponding to year in which transaction specified u/’s. 206C takes place
If Invoice Value exceeds specified amount, TCS @ applicable rate shall be collect by person who receives any amount/’part of amount in cash as consideration.
|Nature of Transaction||If, Sale consideration
|TCS collectible on SALE
CONSIDERATION at specified rate
|Sale of Bullion||2 Lac||1%|
|Sale of Jewellery||5 Lac||1%|
|Other goods or any service||2 Lac||1%|
Mr. A sells goods to Mr. B worth Rs. 5,00,000 (Invoice Value) on 10.06.2016 and receives Rs. 4,95,000 by cheque on 11.06.2016 and Rs. 5,000 by cash on 12.06.2016, Mr. A requires to collect TCS @ 1% on Rs. 5,00,000.
⇐ Gold jewellery and bullions were already covered since year 2012.
⇐ Applicable on Single Bill.
⇐ If single party is having multiple bills each less than 2 Lac, then any amount collected in cash will not be liable to TCS.
⇐ If any payment is liable to TDS, then there will be no TCS under this section for the same payment.
⇐ Even a patient making payment to any hospital is also covered in this rule. Even government hospital is also liable to collect TCS from patients.
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