TCS

TCS under section 206C(1H)-A Detailed View

Income Tax - Tax Collection at Source on sale of goods has been introduced by the Government of India in the Finance Act 2020 to widen the tax base vide Section 206C(1H) w.e.f. 1st October 2020. Under this section, the seller of the goods has to collect the tax from the buyer on receipt of money from him […]...

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Section 206C Tax Collection at Source (TCS) under Income Tax Act, 1961

Income Tax - a) Applicability and Rate [Section 206C(1)/(1C)/(1F)] Section 206 C(1) Sr. No. Nature of goods Rate of TCS (upto 13.05.2020) Rate of TCS (w.e.f 14.05.2020 to 31.03.2021) i. Alcoholic   Liquor for human consumption 1%   1% *(no change)  ii. Tendu Leaves 5% 3.75%  iii. Timber           obtained under a forest lease 2.5% &...

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Section 206C(1H) TCS on sale of goods W.E.F. 01-10-2020

Income Tax - Explanation of TCS u/s 206C(1H) of Income Tax Act on sale of goods with effect from 01-10-2020 The Government of India in the Finance Bill, 2020 introduced a new sub section (1H) to section 206C of the Income Tax Act, 1961 (IT Act) widening the scope of tax collection at source. Provision of the Income […]...

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A Practical Approach to TDS & TCS (Amended upto 31.10.2020)

Income Tax - About The Author Born in a humble middle-class family in Jalandhar (Punjab) in 1962, Ravinder, an avid academic turned every obstacle into opportunity through sheer hard work, graduated in Bachelors of Commerce from DAV College, Jalandhar. After graduation he stepped into nonetheless a rigorous course of accountancy from Institute of Char...

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TCS on GST Value and vis a vis

Income Tax - Ever since TCS on receipt of sale consideration came to existence, there has be a debate on two questions 1. Whether GST will be charged on TCS Value? 2. Whether TCS be collected on GST Value? Answer to 1st question is very clear as CBIC itself had issued a circular in Dec 2018, which was […]...

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New e-TDS/TCS RPU Version 3.4 & FUV version 6.9 & version 2.165

Income Tax - Key Features of e-TDS/TCS Return Preparation Utility Ver. 3.4 for Regular & Correction Statement(s) from FY 2007-08 onwards 1. Section codes 194LBA(a) and 194LBA(b) for Form 26Q:- Existing section code 194LBA has been sub-divided into below mentioned two sections: 194LBA (a) – Certain income in the form of interest from units of...

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Roll-back provisions of TCS under section 206C(1H)

Income Tax - Request for roll-back of provisions of Tax Collection at Source (TCS)  under section 206C (1H) of the Income Tax Act, 1961 which is effective from 01.10.2020. As a result of the said amendment, a seller who receives any amount as consideration for sale of any goods of the value or aggregate of such value exceeding fifty lakh rupees in an...

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TCS- Section 206C(1H)- Request to Provide relief & Clarification

Income Tax - The provisions of section 206C(9) of the Act may be suitably amended to allow persons covered under section 206C(1H) of the Act to apply to the assessing officer for Nil/ Lower Tax collection at source certificate....

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New GST functionalities for TCS & Composition taxpayers

Income Tax - New functionalities made available for TCS and Composition taxpayers 1.Provision to make amendment, multiple times, in Table 4 of Form GSTR-8 ♣ Earlier, if no action was taken on TCS details, auto-populated in TDS/TCS credit form, by the supplier or if the same were rejected by them in the said form, the TCS (e-commerce operators) [&hel...

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Withdraw New Income Tax TCS provisions

Income Tax - We wish to submit that the provision for collecting Income Tax at source (TCS) which is going to be implemented from 1st October, 2020, will add to the already existing enormous compliance burden of taxpayers. 2. The twin provisions for its applicability being sellers having turnover of above Rs. 50 Crores, and buyer’s volume from an...

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TCS not applicable on Scrap generated from Trading Activities

Lala Bharat Lal & Sons Vs ITO (ITAT Luknow) - The issue under consideration is whether the TCS u/s 206C at 1% will be applicable on sale of scrap not generated out of manufacturing activities?...

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TCS U/s. 206C(1C) on Outsourcing of job for collection of toll tax

DCIT Vs M/s.Ahmedabad Vadodara Express Way Co. Ltd. (ITAT Ahmedabad) - DCIT Vs M/s. Ahmedabad Vadodara Express Way Co. Ltd. (ITAT Ahmedabad) It is seen that the assessees have given only permission to the collecting entities to collect the toll fees and maintain the toll plazas by employing a specified category of persons and supervise them and deposit the toll collect...

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TCS not deductible if buyer declares use of goods for Manufacture

ACIT (OSD) Vs M/s. Bansal Ship Breakers P. Ltd. (ITAT Ahmedabad) - ACIT Vs M/s. Bansal Ship Breakers P. Ltd. (ITAT Ahmedabad) Any person responsible for collecting taxes (TCS) under section 206(1) need not to do so if he obtains a declaration from the buyer that he is purchasing the goods for re-use in manufacturing process or producing article or things. It does n...

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Breaking: Kerala HC stays collection of GST on Income Tax TCS amount

PSN Automobiles Private Limited Vs. UOI & CBIC (Kerala High Court at Ernakulam) - PSN Automobiles Private Limited Vs. UOI & CBIC (Kerala High Court at Ernakulam) Petitioner, has submitted that the amount of 1% the dealer collects from the purchaser of a car worth more than ten lakhs, under Section 206C(1F) of the Income Tax Act, cannot be treated as an integral part of the va...

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Toll Plaza does not include Tahbazari & not comes within the purview of Section 206C(1C)

Apar Mukhya Adhikari Vs Income Tax Officer (ITAT Allahabad) - Apar Mukhya Adhikari Vs ITO (ITAT Allahabad) Under Section 206C(1C) of the Act every person, who grants a lease or a licence is required to collect tax at the prescribed rate from the licencee for granting lease/licence or otherwise transferring any right or interest to any other person with re...

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CBDT clarifies doubts on account of new TCS provisions

Release ID: 1660392 - (30/09/2020) - Finance Act, 2020 amended provisions relating to TCS with effect from 1st October, 2020 to provide that seller of goods shall collect tax @ 0.1 per cent (0.075% up to 31.03.2021) if the receipt of sale consideration from a buyer exceeds Rs. 50 lakh in the financial year....

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TDS under Section 194O- CBDT issues Guidelines

Circular No. 17 of 2020-Income Tax - (29/09/2020) - Finance Act, 2020 inserted a new section 194-0 in the Income-tax Act 1961 which mandates that with effect from 1st day of October, 2020, an e-commerce operator shall deduct income-tax at the rate of one per cent (subject to the provisions of proposed section 197B of the Act) of the gross amount of s...

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Party Wise Break Up of TCS- CBDT Amends Income Tax rules

Notification No. 54/2020-Income Tax [G.S.R. 464(E)] - (24/07/2020) - Credit for tax collected at source shall be given to the person from whose account tax is collected and paid to the Central Government account for the assessment year relevant to the previous year in which such tax collection is made...

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Govt Extends due dates under Income Tax Law & Benami laws

Notification No. 35/202-Income Tax [S.O. 2033(E)] and Press Release ID: 1634070 - (24/06/2020) - Vide Income Tax Notification No. 35/2020 dated 24.06.2020  govt extends  Due date for ITR for FY 2018-19  upto 31.07.2020, Last date for investments to be eligible for deduction under Chapter VI-A i.e. 80C, 80D etc for the FY 2019-20 [AY 2020-21] upto 31.07.2020, Last date for ITR for FY 2019-20 ...

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Fall in collection of direct taxes is on expected lines: CBDT

NA - (07/06/2020) - There are reports in a certain section of media that the growth of direct taxes collection for the FY 2019-20 has fallen drastically and buoyancy of the direct tax collection as compared to the GDP growth has reached negative. These reports do not portray the correct picture regarding the growth of ...

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Recent Posts in "TCS"

TCS under section 206C(1H)-A Detailed View

Tax Collection at Source on sale of goods has been introduced by the Government of India in the Finance Act 2020 to widen the tax base vide Section 206C(1H) w.e.f. 1st October 2020. Under this section, the seller of the goods has to collect the tax from the buyer on receipt of money from him […]...

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Posted Under: Income Tax |

Section 206C Tax Collection at Source (TCS) under Income Tax Act, 1961

a) Applicability and Rate [Section 206C(1)/(1C)/(1F)] Section 206 C(1) Sr. No. Nature of goods Rate of TCS (upto 13.05.2020) Rate of TCS (w.e.f 14.05.2020 to 31.03.2021) i. Alcoholic   Liquor for human consumption 1%   1% *(no change)  ii. Tendu Leaves 5% 3.75%  iii. Timber           obtained under a forest lease 2.5% &...

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Section 206C(1H) TCS on sale of goods W.E.F. 01-10-2020

Explanation of TCS u/s 206C(1H) of Income Tax Act on sale of goods with effect from 01-10-2020 The Government of India in the Finance Bill, 2020 introduced a new sub section (1H) to section 206C of the Income Tax Act, 1961 (IT Act) widening the scope of tax collection at source. Provision of the Income […]...

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A Practical Approach to TDS & TCS (Amended upto 31.10.2020)

About The Author Born in a humble middle-class family in Jalandhar (Punjab) in 1962, Ravinder, an avid academic turned every obstacle into opportunity through sheer hard work, graduated in Bachelors of Commerce from DAV College, Jalandhar. After graduation he stepped into nonetheless a rigorous course of accountancy from Institute of Char...

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New e-TDS/TCS RPU Version 3.4 & FUV version 6.9 & version 2.165

Key Features of e-TDS/TCS Return Preparation Utility Ver. 3.4 for Regular & Correction Statement(s) from FY 2007-08 onwards 1. Section codes 194LBA(a) and 194LBA(b) for Form 26Q:- Existing section code 194LBA has been sub-divided into below mentioned two sections: 194LBA (a) – Certain income in the form of interest from units of...

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TCS on GST Value and vis a vis

Ever since TCS on receipt of sale consideration came to existence, there has be a debate on two questions 1. Whether GST will be charged on TCS Value? 2. Whether TCS be collected on GST Value? Answer to 1st question is very clear as CBIC itself had issued a circular in Dec 2018, which was […]...

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TCS Calculator – Section 206C(1H)- Sale of goods- FY 2020-21

TCS calculator under section 206C(1H) of Income Tax Act, 1961 – TCS on Receipt on sale of Goods for the period 1st October 2020 to 31st March 2021 Please find herewith Excel Utility developed by our office for calculation of TCS U/s 206C(1H) of the Income Tax Act which may be useful to you. In […]...

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Posted Under: Income Tax |

Tax Compliance Calendar for November 2020

Article compliance dye date under Income Tax Law, GST Law and Labour Laws. Same includes due date for filing of Form GSTR-3B, GSTR-7, GSTR-8, GSTR-1, GSTR-6, GST CMP 08, GSTR-5, GSTR-5A (OIDAR Service Provider), GSTR 9, GSTR 9C, GSTR-4 and due of Furnishing Tax Audit Report for A/Y 2020-21. It further include due date of […]...

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TDS / TCS Rate Chart for F.Y. 2020-21 (A.Y: 2021-22)

What is TDS? Tax Deducted at Source (TDS) is a mechanism that has been introduced by the Income Tax Department. Under this, the responsible person is supposed to deduct a certain percentage of income as tax before making the payment to the receiver. The payment includes salary, commission, professional fees, interest, rent, etc. Due to [&...

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New provisions of TCS w.e.f. 1.10.2020

New provisions of TCS on remittance abroad under LRS and on purchase of overseas tour programme package and on sale of goods w.e.f. 1.10.2020 As per newly inserted provisions by the Finance Act, 2020 TCS is to be collected u/s 206C(1G) on sale of foreign exchange by foreign exchange dealer an also by a seller […]...

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Income Tax on Sale & Purchase of Motor Vehicle In India

Motor Vehicle includes Cars, buses, motorcycles, off-road vehicles, light trucks and regular trucks. In India there are more than 300 million operating vehicles. In this modern era everyone wants to be travel fast overcoming the hindrance of traffic and motor vehicles allows you to travel fast comfortably. India has 22 cars per 1000 indiv...

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GST: How to file details in TDS & TCS Credit Received table

Article contains FAQs and Manual on GST TDS and TCS Credit Received. It explains  TDS and TCS Credit Received comprises of which tables, Who needs to file TDS and TCS Credit Received, Is it mandatory to file TDS and TCS Credit Received for every tax period, From where can I as a taxpayer file TDS […]...

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Form GSTR-8 Statement of TCS – GST – How to file & FAQs

A. FAQs on Filing of Form GSTR-8-  Statement of TCS (Tax Collected at Source) Q.1 What is Form GSTR-8? Ans: Form GSTR-8 is a Statement of TCS (Tax Collected at Source) to be filed by E Commerce Operators. Form GSTR-8 contains the details of taxable supplies and the amount of consideration collected by such operator […]...

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FAQ’s on TCS on sales of Goods- Section 206C(1H)

From October 1, 2020, our Government has introduced a new provision for collecting TCS for the sale of goods and depositing the same to the Government. These provisions are given in Section 206C (1H) of the Income Tax Act. 1. What is Tax Collected at Source (TCS)? Tax Collected at Source (TCS) is the tax payable by […]...

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TCS Under Section 206C(1H)

TCS Under Section 206C(1H)  Background: Section 206C of the Income-tax Act, 1961 (‘the Act’) provides for the collection of tax at source (‘TCS’) on stipulated kinds of goods. TCS is a procedure where payee collects an amount as TCS from the buyer in addition to amount of receipt of sale consideration and pays to ...

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TCS on Foreign Travel under Income Tax Act, 1961

Tax shall be collected by seller of an overseas tour programme package @ 5% if buyer has furnished his PAN, otherwise tax shall be collected @ 10% in accordance with section 206CC....

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TCS on Foreign Remittance under Income Tax Act, 1961

1. INTRODUCTION The population of India is 125 crores and only 1.46 crores people pay tax in India i.e. around 1.15% people pay tax. Looking to lower number of people paying taxes Govt. is making way to widen tax base by collecting tax from source itself. It means seller shall collect certain percentage of tax […]...

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Section 206C(1H)- New TCS Provision on Sale of Goods

Provision of section 206C(1H) is applicable only on the Sale of goods of the value exceeding fifty lakh rupees and Supply of Services has been kept out of the purview of this sub-section. Therefore, the provision is not applicable on the consideration received in relation to Supply of Services....

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TCS Unresolved Controversy

BACKGROUND OF TAX COLLECTION PROVISIONS TCS was first introduced by Central Government through Finance Act 1988  (vide Chapter XVII-BB)  just to curb those sectors/ persons who are unidentified and mainly from unorganized sectors. Section 206C (1) – EVERY PERSON being seller AT TIME OF DEBITING OF BUYER “OR” AT TIME OF RECEIPT OF ...

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Tax Collected at Source (TCS) on sale of goods

The Finance Bill, 2020 has proposed a new sub-section (1H) under Section 206C requiring every seller whose total turnover in the business carried on exceed Rs.10 crore in the preceding financial year to collect tax at source at the rate of 0.1% of the sale consideration exceeding Rs.50 lakhs in respect of sale of any […]...

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How to pass entries in books for TCS on Sales of Goods

Implementation of Tax Collected at Source (TCS) on Sales consideration of Goods & Accounting Entries to be passed in the books of collector A new section 206(1H) has been introduced by government for collecting TCS on sale of goods with effect from 01 October 2020.  Since the provision is new, hence entities must make certain [&h...

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TCS under Section 206C(1H) of Income Tax Act,1961 wef 01.10.2020

Friends before going to the discussions, we have to refer the definition of TCS as per Sec.206C(1H) under Income Tax,1961. The Government of India newly introduced Tax Collection at Source (TCS) on sale of goods vide Sec. 206(1H) w.e.f.01.01.2020. Tax Collection at Source is the tax payable by a seller which he raised bills to […]...

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Quarterly & Annual e-TDS/TCS return & FAQs

What is annual e-TDS/TCS Return? -Annual e-TDS/TCS return is the TDS return under section 206 of the Income Tax Act (prepared in Form Nos. 24, 26 or 27) or TCS return under section 206C of the Income Tax Act (prepared in Form No. 27E), which is prepared in electronic media as per prescribed data structure. Such returns furnished in a CD/P...

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GST not leviable on TCS collected under Income Tax Act, 1961

For the purpose of determination of value of supply under GST, TCS under the provisions of the Income Tax Act, 1961 would not be includible as it is an interim levy not having the character of tax....

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Overview of tax collected at source under section 206C

Chandani Nawalkha There are close to 32 items of income/payments on which tax is deductible at source (TDS) and 11 items on which tax has to be Tax collected at source (TCS). However this position has now been changed after introduction of new sub section (1H) in Section 206C of the Income Tax Act vide […]...

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Liberalised Remittance Scheme & section 206C TCS provisions

In this article, an attempt is made as to how to comply with provisions related to TCS of section 206C1G(a) of Income Tax Act 1961 in respect of remittance under LRS....

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Revised Rules for Income Tax Provisions Applicable from October 2020

The CBDT has announced certain key changes in the income-tax provisions for certain payments and expenses, which shall be applicable from Oct 1st, 2020, for facilitating ease for the assesses and taxpayers for the Act. Many of the taxpayers, investors, depositors, and consumers will get affected by the new provisions such as changes i...

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Section 206C(1H) TCS to be charged on Invoice or not by Seller?

As per finance Act 2020, section 206C (1H) is introduced by government. It states that every person whose turnover in preceding financial year is more than 10 crore and in previous year, consideration received from any customer of more than 50 Lakh, then seller is required to collect TCS at 0.1% from customer. The Section […]...

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माल की बिक्री पर लगने वाले टीसीएस के सम्बन्ध में सवाल जवाब

माल की बिक्री पर लगने वाले टीसीएस के सम्बन्ध में 15 सवाल और उनके जवाब माल की बिक्री के सम्बन्ध में लागू हुए टीसीएस के प्रावधानों के ...

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TCS on sale of Goods – Analysis of Section 206C(1H)

Analysis of Section 206C (1H) of Income Tax Act, 1961 1. Finance Act 2020 has introduced sub-section (1H) in 206C of Income Tax Act, 1961. 2. Vide the above sub-section, TCS is required to be collected @0.1% (0.075% upto 31st March 2021) at the time of receipt of sale consideration (in relation to sale of […]...

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How to Enable TCS Calculation on Sale of Goods in Tally ERP 9

HOW TO ENABLE TCS CALCULATION ON SALE OF GOODS IN TALLY ERP 9 Hello everyone. As you all know TCS on sale of goods is applicable is already applicable from 1st oct, 2020. Out of you so many people have doubt that how to maintain in Tally, and enable auto calculation in Tally. So here […]...

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Short analysis of TCS u/s 206C(1H) on Sale of Goods

Section 206C of the Income Tax Act, 1961 (Act) deals with the collection of tax at source (TCS) on various goods mentioned under various sub sections as amended from time to time. TCS is the amount of tax which is to be collected by the seller from the buyer on sale of goods as covered […]...

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33 FAQs on TCS on LRS Remittances & Overseas Tour Package

FAQs on TCS applicable on LRS Remittances & Overseas Tour Package U/s 206C(1G) Finance Act 2020 has inserted a new sub-section (1G) in TCS (Tax Collected at Source) under Section 206C of the Income Tax Act, 1961 to collect tax out of foreign remittance transactions under Liberalized Remittance Scheme [LRS] as well as amount recei...

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TCS on Sales of Goods- section 206C(1H)- Detailed analysis

Detailed analysis with a practical approach on TCS on Sales of Goods- section 206C(1H) Since morning of the 1st day of October, 2020 we have received so many calls from clients and friends making queries on different aspects of section 206C(1H) of the income Tax Act. Some of such important queries and probable answers of […]...

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TCS collected at Source (TCS) – Presentation

TAX COLLECTED AT SOURCE (TCS) MEANING -Every seller shall collect tax from the buyer of any specified goods at the time of receiving the payment or debiting the buyer account whichever is earlier -Section 206C of the Income Tax Act governs the goods on which the seller has to collect tax from the purchaser. CLASSIFICATION […]...

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New TCS Provisions on Sale of Goods under Section 206C(1H)

A Study Of New TCS Provisions On Sale Of Goods under Section 206C(1H) Of Income Tax Act, 1961    From October 1, 2020, our Government has introduced a new provision for collecting TCS for the sale of goods and depositing the same to the Government. These provisions are given in Section 206C (1H) of the […]...

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TCS on Sale of Goods- FAQs | Section 206C(1H) | Tabular Presentation

Article explains Who is Liable for TDS on Goods under Section 206C(1H), From whom tax shall be collected, Timing of Collection of TCS, What is the Definition of Goods, Whether Transactions in securities through RSE is liable to TCS, TCS on Motor vehicle, TCS on Transaction in electricity, TCS on sale of Software, TCS on […]...

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TCS on Sale of Goods-Section 206C(1H)-Easy Explanation

1. CONCEPT OF TCS Govt.  is taking step for increasing tax payers base. One such major step is levy of TCS on sale of goods u/s 206C(1H). Let us understand in simple term- If turnover of business is more than 10 Crores in F.Y. 2019-20 than it has to collect TCS @ 0.075% (Due to […]...

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TCS on sale of any goods- Section 206C(1H) of Income Tax

TCS on sale of any goods- Section 206C(1H) of Income Tax Act,1961 Tax Collected at Source (TCS) is the tax payable by a seller which he collects from the buyer. The rate of TCS is different for goods specified under different categories. Section 206C of the Income Tax Act, 1961 specifies the categories of goods on which seller has t...

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TCS on Sale of Goods- Income Tax Provisions

As per Section 206(1H), with effective from 1st October 2020 goods sellers whose total sales, gross receipts or turnover from the business carried on by it exceed 10 crore rupees during the financial year 2019-20 shall be liable to collect such TCS at a rate of 0.075%(0.1% from  1st April 2021) on consideration received from a […...

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माल की बिक्री के सम्बन्ध में प्राप्त राशि पर टीसीएस का नये प्रावधान – धारा 206C(1H)

माल की बिक्री के सम्बन्ध में प्राप्त राशि पर टीसीएस का नये प्रावधान – धारा 206C(1H)- आयकर चर्चा 1 अक्तूबर 2020 से सरकार ने माल की बिक्री के ...

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Overview of TCS on Sale of Goods Sec 206C(1H) – Income Tax Act 1961

1. A sub-section (1H) to section 206C of the Income Tax Act, 1961 has been inserted vide Finance Act 2020 which is effective from 01.10.2020. Section 206C (1H) provides for the collection of Tax at Source (TCS). 2. This article covers the statutory provisions, the functionality of the TCS on goods and the salient features […]...

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Updated Practical FAQs on TCS on Sale of Goods wef 01.10.2020

Sub-section (1H) of section 206C shall be made effective from 1st October 2020. It states that: A Seller of Goods is liable to collect TCS from Buyer on Sale of any goods; Turnover of seller is more than INR 10 Crores in previous financial year; TCS to be collected if the Value/Aggregate Value of Goods is more than ₹ 50 Lakhs in a f...

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TCS on Sale of Goods | Section 206C(1H) | Income Tax Act

Article on TCS On Sale Of Goods  Under Section 206C(1H) Of The Income Tax Act, 1961 Applicable Form 01-10-2020 explaining To Whom Section 206C(1H) is applicable,  From whom TCS shall be Collected, Whether Section 206C(1H) is applicable to the exporter, When collection shall be started from a particular buyer, Time of Collection of TCS, ...

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Understanding of TCS on Sale of Goods

Section 206C(1H) of Income Tax Act, shall come into effect from 01.10.2020. 1H) Every person, being a seller, who receives any amount as consideration for sale of any goods of the value or aggregate of such value exceeding fifty lakh rupees in any previous year, other than the goods being exported out of India or […]...

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Tax Collected at Source (TCS) on Sale of Goods with 15 FAQs

Tax collected at Source on sale of Goods effective from 01st October 2020 Due date for filing Annual return and audit report under GST has been extended, tax payer got some relaxation however new compliance requirement has been introduced which is applicable from 01st October 2020 i.e. tax to be collected at source on sale of goods. [&h...

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Applicability of Section 206C(1H) TCS on GST portion

Applicability of TCS u/s 206C(1H) on GST Component? There were doubts among taxpayers whether TCS u/s 206C(1H) is to be collected on net of GST amount or inclusive of GST. The matter has been clarified by Income Tax Department vide Circular No.17/2020 dated 29.09.2020 Para 4.6 of circular read as under: 4.6 Adjustment for sale return, [&...

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Application for lower deduction of tax by the non-residents

Certificate for lower or nil deduction of tax is issued by the Assessing officer to the non-resident for a specified period mentioned in the certificate for which it is valid unless it is cancelled by the assessing officer....

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TCS on Sale of Goods – Detailed Analysis

In today’s date, the most popular and most discussed topic is TCS on Sale of Goods since it is applicable with effect from 01 October, 2020. Though the topic is the most discussed one, there are so many confusions in the mind of readers regarding this new section and its practical implementation. Hence today I […]...

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TCS on Collection for sale of goods from 01/10/2020

TCS to be Collected on Collection for the sale of goods from 01/10/2020. If Your turnover > 10 crore in FY 19-20 Here is my write up on TCS to be collected on Amount Received from SALE OF GOODS levied from 01-10-2020.  It covers – How TCS on Goods will be collected? What rate in […]...

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CBDT clarifies doubts on account of new TCS provisions

Release ID: 1660392 (30/09/2020)

Finance Act, 2020 amended provisions relating to TCS with effect from 1st October, 2020 to provide that seller of goods shall collect tax @ 0.1 per cent (0.075% up to 31.03.2021) if the receipt of sale consideration from a buyer exceeds Rs. 50 lakh in the financial year....

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Big Clarifications on TCS on sale of goods w.e.f 1st Oct 2020

Big Clarifications by government on TCS on sale of goods w.e.f 1st Oct 2020 Analysis of New Section 206C(1H)  1. The Government of India has introduced a new Section 206C(1H) with regards to ‘Tax Collection at Source‘. Applicable to everyone having turnover of Rs. 10 crores in last financial year. 2. Every seller who has [&he...

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Posted Under: Income Tax |

Complete Analysis of TCS under Section 206C(1H)

Complete Analysis of Tax Collected at Source under Section 206C (1H) of the Income Tax Act, 1961 Tax Collected at source (TCS) is Income Tax which is required to be collected by the seller (Collector) from the Buyer along with the Price of Goods and applicable taxes. Provisions relating to tax Collected at Source has […]...

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TDS under Section 194O- CBDT issues Guidelines

Circular No. 17 of 2020-Income Tax (29/09/2020)

Finance Act, 2020 inserted a new section 194-0 in the Income-tax Act 1961 which mandates that with effect from 1st day of October, 2020, an e-commerce operator shall deduct income-tax at the rate of one per cent (subject to the provisions of proposed section 197B of the Act) of the gross amount of sale of goods or provision of service or ...

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Section 206C(1H) TCS based on Turnover

Section 206C(1H) of Income Tax Act, 1961– Tax Collected at Source (TCS) based on the Turnover Relevant extract of the Provision Every person, being a seller, who receives any amount as consideration for sale of any goods of the value or aggregate of such value exceeding fifty lakh rupees in any previous year, other than […]...

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Posted Under: Income Tax |

TCS on Sales of Goods w.e.f. 1st October 2020

After the introduction of GST, number of cases were noticed that some suppliers do not file the returns even though they have not opted for composition scheme or below threshold limit. They do not upload their transactions in the form of GSTR-1 and do not pay the tax thereon, full or partly and there was […]...

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TCS on Sale of Goods Section 206C(1H)- Income Tax Act, 1961

♦ Introduction to Section: -Section 206C of the Income Tax Act provides for the collection of Tax at Source (TCS). –TCS is collect on specified goods like Alcoholic Liquor for human consumption, tendu leaves, scrap etc. -In order to widen and deepen the tax, a two new sub-section (1H) is inserted with effect from 1.10.2020. [&hell...

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Treatment of Credit Notes for TCS on Sale of Goods u/s 206C(1H)

In the previous article titled ‘All you need to know about TCS on sale of Goods‘, I had tried to cover the various nuances of TCS on sale of goods applicable from 1st Oct 2020. I received a large number of queries regarding the treatment of credit notes for TCS purpose, thus, I have tried […]...

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TCS on sale of Goods – Illustrations- Section 206C(1H) wef 01.10.2020

TCS on sale of Goods- Section 206C(1H) w.e.f. 01.10.2020 : Overview with Illustrations To widen and deepen the scope of early collection of revenue to the Government, Finance Bill, 2020 brought in levy of TCS (0.1% or 1% in case PAN/Aadhaar not provided by Buyer) on sale of goods for which sales consideration. Sub section 1H […]...

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TCS under Section 206C(IH) -New Income Tax Compliance

Government of India’s Finance Act,2020 has amended the Income Tax Act,1962 by adding a subsection 1H under the section 206C of the latter. This pertains to the collection of TCS by the seller on the sale of any goods. This seems to take effect from 01.10.2020 pan India. This article briefs on the essence of […]...

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Roll-back provisions of TCS under section 206C(1H)

Request for roll-back of provisions of Tax Collection at Source (TCS)  under section 206C (1H) of the Income Tax Act, 1961 which is effective from 01.10.2020. As a result of the said amendment, a seller who receives any amount as consideration for sale of any goods of the value or aggregate of such value exceeding fifty lakh rupees in an...

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Section 206C(1H) : TCS on Sale of Goods

Section 206C of the Income Tax Act provides for the collection of tax at source (TCS) on the business of trading in alcohol, liquor, forest produce, scrap, etc. In order to widen and deepen the tax net, two new sub-sections (1G) and (1H) to section 206C has been inserted by the Finance Act 2020 with effect […]...

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TCS- Section 206C(1H)- Request to Provide relief & Clarification

The provisions of section 206C(9) of the Act may be suitably amended to allow persons covered under section 206C(1H) of the Act to apply to the assessing officer for Nil/ Lower Tax collection at source certificate....

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Income Tax TCS under Section 206C(1H) Wef 01/10/2020

Tax Collection At Source (TCS) Under Newly Introduced Section 206C(1H) of The Income Tax Act, 1961 Wef 01/10/2020 1. BASIC FEATURES: a) Section is applicable only in case of seller whose total sales, gross receipt or turnover from the business carried on by him exceeds Rs. 10 crores during the financial year immediately preceding financia...

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TCS on LRS Remittance & Overseas Tour Packages

TCS Provisions on LRS Remittances & Overseas Tour Packages effective 1st October 2020 Finance Act 2020 has inserted a new sub-section (1G) in TCS (Tax Collected at Source) under Section 206C of the Income Tax Act, 1961 to collect tax out of foreign remittance transactions under Liberalized Remittance Scheme (LRS) as well as amount re...

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TCS on Sales of Goods under Income Tax w.e.f 1st Oct 2020!

Arjun (Fictional Character): Krishna, what is the amendment in applicability of TCS under section 206C of Income tax Act? Krishna (Fictional Character): Arjuna, an amendment has been made in section 206C (1H) of Income Tax, that if any seller of goods whose turnover exceeds Rs. 10 Cr. in the preceding FY, then he is liable […]...

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What is Tax Collected at Source (TCS) and applicable rates?

The seller has to collect tax from the payer who has purchased the following items : Alcoholic liquor for human consumption Tendu leaves Timber obtained under a forest lease Timber obtained by any mode other than under a forest lease Any other forest produce not being timber or tendu leaves...

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Income Tax TCS on sale of goods from 01st Oct 2020 with FAQ

Income tax TCS provision on sale of goods applicable from 01st Oct 2020 with FAQ Insertion of subsection – 206 (1H) in the finance Act 2020 Section 206 (1H) read as follows (1H) Every person, being a seller, who receives any amount as consideration for sale of any goods of the value or aggregate of […]...

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TCS on sale of Goods- Section 206C(1H) w.e.f. from 01.10.2020

​All about TCS on sale of Goods [newly inserted Section 206C(1H)] effective from 01.10.2020 Introduction to TCS (Tax collection at source) Tax Collected at Source (TCS) is the tax payable by a seller which he bills on to the from the buyer at the time of sale and is payable into the Government Treasury on receipt of money from the...

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TCS on Sales of Goods

TCS on sale of goods will be applicable with effect from 1st October 2020. TCS applicability, rates and compliance are analysed below for your reference: Applicability Seller of goods are required to collect of TCS on the sale of goods exceeding Rs. 50 Lakhs with in India. Turnover of the seller during preceding financial year shall [&he...

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TCS on Sale of Goods – New provision under Income Tax

TCS is a tax that is collected by the seller from the buyer and paid to the government on behalf of the buyer. The Finance Act, 2020 has introduced the new section 206C (1H) of the Income Tax Act, 1961 related to TCS on sale of goods. Applicable from: 1st October 2020 Applicability: 1. If […]...

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TCS on Sale of Goods Section 206C(1H) – Income Tax Act, 1961

The Finance Act, 2020 has introduced the new section 206C(1H) of the Income Tax Act, 1961 for Tax Collected at Source on sale of goods. The said provisions are applicable from 01.10.2020. Applicability: whose total sales, gross receipts or turnover from the business carried on by him exceed ten crore rupees (>10 Crores) during the fi...

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TCS on Sale of Goods-Sec 206C(1H)-Applicable from 01.10.2020

With a view to widen the tax-net the India Government has widened the scope of TCS (Tax Collected at Source) provided under section 206C of the Income Tax Act, 1961. As per the extended scope, tax is need to be collected on foreign remittances under Liberalized Remittance Scheme (LRS) , sale of overseas tour packages […]...

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TCS under Section 206C(1H) Effective from 01.10.2020

Article explains TCS related provisions under Section 206C(1H) of Income Tax Act, 1961 Effective from 1st October 2020. It explains Transaction on which TCS  under Section 206C(1H) of Income Tax Act, 1961 is aopplicable, Rate of TCS, Rate if PAN No. is not provided, Due date of payment of TCS etc. XXXX as Buyer Effective […]...

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Increase in TDS/TCS Compliance for non audited assesses

Increasing Compliance on Non Audited Individuals / HUFs With Respect To Deduction of TDS/Collection of TCS Do you know that high value payments or receipts made by non-audited individuals or HUFs have now come under the compliance net of direct taxes through TDS or TCS applicability?  In case of individuals or HUFs, whose books of [&hell...

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Defer applicability of Section 206C(1H) TCS on sale of goods

We humbly request your goodself to defer the applicability of new TCS levy on sale of goods to April 1, 2021. This would provide adequate time to taxpayers and professionals to integrate the new TCS levy into their IT systems for effective implementation....

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Income tax TCS provisions applicable from 01st Oct 2020

Quick view on the New income tax provisions applicable from 01st Oct 2020. As all aware of the Amendment  made in the  section 206C in the budget 2020 by inserting subsections. 1. insertion of subsection – 206(1G) 2. insertion of subsection – 206(1H) insertion of subsection – 206(1G)  Section read as follows  (I) after sub-secti...

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TCS on foreign remittances WEF 1st October 2020

Those making foreign remittances need to pay attention to their tax collected at source (TCS) liability from next month as a key tax provision kicks in from 1st October 2020. As per the Finance Act 2020, funds sent abroad under the RBI’s liberalised remittance scheme is subject to a 5% TCS subject to certain riders. […]...

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Section 206C(IH) – TCS on Sale of All Goods – New tool to curb and track usage of unaccounted money

TCS- New tool to curb and track usage of unaccounted money The Government of India has introduced a new section 206C(1H) with regards to ‘Tax Collection at Source‘. Applicable to everyone having turnover of Rs. 10 crores in last financial year from 01.10.2020. (A) EXTRACTS OF THE SUB-SECTION New sub-section (1H) under Section ...

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All you need to know about TCS on sale of Goods

TDS and TCS have been a reliable weapon for the Government over the years serving the varied objectives of preventing tax evasion, widening the tax base and ensuring steady revenue collection for the Government. Thus, over the years, the Government’s clear intention has been to bring as many transactions under the ambit of TDS/TCS as [&...

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New GST functionalities for TCS & Composition taxpayers

New functionalities made available for TCS and Composition taxpayers 1.Provision to make amendment, multiple times, in Table 4 of Form GSTR-8 ♣ Earlier, if no action was taken on TCS details, auto-populated in TDS/TCS credit form, by the supplier or if the same were rejected by them in the said form, the TCS (e-commerce operators) [&hel...

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TCS Under Income Tax – Provisions Applicable from 01.10.2020

Tax Collected at Source Under Income Tax – New Provisions Applicable from 01 October 2020 Introduction Finance Act, 2020 introduced 3 new provision under Tax Collected at Source (“TCS”): TCS on foreign remittance through LRS; TCS on selling overseas tour packages; and TCS on sales of any goods TCS unlike TDS is required to be [&hell...

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Withdraw New Income Tax TCS provisions

We wish to submit that the provision for collecting Income Tax at source (TCS) which is going to be implemented from 1st October, 2020, will add to the already existing enormous compliance burden of taxpayers. 2. The twin provisions for its applicability being sellers having turnover of above Rs. 50 Crores, and buyer’s volume from an...

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TCS: 206C(1H) Introduced by Finance Act, 2020

1. Introduction: The new section 206C(1H) of the Income Tax Act,1961 has been introduced by The Finance Act, 2020 for Tax Collected at Source (TCS) on sale of goods. The provisions of this section has been notified & applicable w.e.f. 01.10.2020.  2. Meaning of TCS: TCS Means collecting tax at source for certain transactions which a...

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TCS on Goods Sold: Applicability of New Section 206C(1H) w.e.f 1st October 2020

Introduction Finance Act 2020 introduced a new provision under Section 206C (1H) for the Tax Collected at Source (TCS) on Goods With effect from 1st of October 2020. As per the new provision if any seller of any goods whose turnover in the preceding FY exceeds Rs. 10 Crore then, from 1st of October 2020, […]...

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TCS under section 206C(1H) – Practical Challenges

1. The Law Every person, being a seller,   who receives any amount as consideration for the sale of any goods of the value or aggregate of such value exceeding fifty lakh rupees in any previous year, other than the goods being exported out of India or goods covered in Section 206C of sub-section (1) or sub-section (1F) or sub-secti...

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Section 206C(1H) of Income tax Act, 1961 – TCS for Traders

All about provision of section 206C(1H) of Income tax Act, 1961 – Tax Collection at Source for Traders Government introduced new provision vide section 206C(1H) applicable from FY 2020-21, however due to pandemic the applicability of the provision deferred to 01.10.2020 i.e. the provision of said section will be effective from 01.10.202...

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Updated reduced TDS/TCS Rate Chart for F/Y 2020-21

Due to Covid-19, CBDT has reduced the TDS/TCS rate by 25% through press release dated 13/05/2020. However, No official notification is being released by CBDT till now for reduction of TDS/TSC rate. On detailed analysis, I come to know that CBDT has reduced the TDS/TCS rate in most of cases but not in all cases […]...

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TCS Mechanism under GST

TCS and TDS have some similar and dissimilar features. TDS refers to tax that is deducted when recipient makes some payments under a contract etc. whereas TCS refers to tax which is collected by the e-commerce operator when a supplier supplies through its portal and the payment for that supply is collected by the e-commerce […]...

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Income Tax Deadlines that ends on 31st July 2020

Due to the coronavirus pandemic, the government had extended the various due dates for giving relaxations to the taxpayers. In this context, government has been extended the due date for filing of income tax return for financial year 2018-19 (2019-20) to 30th September, 2020 via notification no. 56/2020 dated 29.07.2020. It should be note...

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Registration process for online TDS/TCS return filing & upload

Step by step process of registration for online TDS/TCS return filing and upload 1. First of all, allow the pop-ups in your browser (following is the screenshot of chrome browser). Afterwards, don’t forget to block it again. 2. Now open http://tdscpc.gov.in/ and make login as usual. You will find a link with words “Register at [&helli...

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Guide to meet TDS / TCS Obligations for deductor/Collector

What Is TDS/TCS? Generally the person who earns the income pays tax on such income either in the form of advance tax or in the form of self-assessment tax. However, in certain situations, the person making prescribed payments is required to deduct tax from such payments (at prescribed rates) and deposit the tax so deducted […]...

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Is PAN Mandatory For Some Transactions?

A. PAN in Returns or Certificates or Correspondence Every person shall quote his permanent account number (PAN) in all his returns or challans or correspondence with any income-tax authority. Other than this, every person shall quote his PAN in all documents pertaining to the transactions specified in rule 114B and given in the table belo...

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Extended due dates for TDS/TCS related compliances

Due date of TDS/TCS related compliances were extended by CBDT on 24.06.2020 vide CBDT’s notification No. 35/2020, dated 24-06-2020. Here we have compiled due date of filing TDS/TCS statement (Form 24Q, 26Q, 26QB, 26QC, 26QD 27Q and 27EQ) of FY 2019-20 and due date for issue of TDS/TCS certificate (Form 16 and Form 16A). EXTENSION [&...

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Party Wise Break Up of TCS- CBDT Amends Income Tax rules

Notification No. 54/2020-Income Tax [G.S.R. 464(E)] (24/07/2020)

Credit for tax collected at source shall be given to the person from whose account tax is collected and paid to the Central Government account for the assessment year relevant to the previous year in which such tax collection is made...

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TCS on Sale of Goods – Section 206C(1H) – Aa Raha Hu Main !!!

Any person who has a gross turnover/receipts/sale from his business in preceding financial year exceeding Rs. 10 Crores (excluding those persons who are notified in official gazette by central Govt) AND That person (seller) has sold goods to a buyer in excess of Rs. 50 lacs after 01.10.2020 THEN On further sale of goods by […]...

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TCS not applicable on Scrap generated from Trading Activities

Lala Bharat Lal & Sons Vs ITO (ITAT Luknow)

The issue under consideration is whether the TCS u/s 206C at 1% will be applicable on sale of scrap not generated out of manufacturing activities?...

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How to submit Response to Outstanding Income Tax Demand

Once the e-Filed returns are processed and outstanding tax demand available in e-Filing portal, assessee is facilitated to submit the response against outstanding tax demand raised by CPC/AST. In this article we have discussed how a Taxpayer can submit online response against such Income Tax Demands :-...

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Dispose all nil or lower deduction TDS/TCS applications by 31.08.2020

CBDT Chairman has instructed the department to Disposal of all pending applications as on 30.06.2020 for nil or lower deduction TDS/TCS certificates u/s 197 and 206C(9) by 31.08.2020 and dispose all Fresh Applications Within one month of the receipt of the application. Also Read- CBDT prioritise Vivad Se Vishwas Scheme case of demand &...

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