1. Applicable to those sellers whose total sales/revenue or gross collection exceeds 10 cr in preceding financial year.

2. Seller will collect TCS from his customers from whom collection exceeds 50 Lacs in current year.

3. TCS will be collected on amount collected over and above 50 Lacs.

4. TCS will be collected at the time of raising the invoice or receiving the consideration, whichever is earlier.

5. TCS rate is 0.10% if PAN/Aadhaar available or 1% if PAN/Aadhaar is not available. Please note for the period from 01.10.2020 to 31.03.2021 rate is been reduced to 0.075% due to Covid-19.

6. Calculation will be on Gross Amount including taxes, since its based on consideration received.

7. If buyer is deducting TDS then this section is not applicable

8. If seller is collecting TCS under any other section, this section will not be applicable.

9. Not applicable on sale of services.

10. Export of goods will not be considered for TCS under this section.

11. Effective from 01.10.2020

Author Bio

Qualification: CA in Practice
Company: Shiwam Kumar Bharti
Location: Gurugram, Haryana, IN
Member Since: 21 May 2019 | Total Posts: 1

More Under Income Tax

One Comment

  1. Praveen says:

    “TCS will be collected at the time of raising the invoice or receiving the consideration, whichever is earlier.”

    This point does not appear to be correct. Because, tax is to be collected on receipt of sales consideration. Please clarify.

    Further, how will tax be collected? I mean what will be mechanism of collection of Tax? Will the Seller claim it in the invoice or through some other process?

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