NEW TAX ON SALES 01 OCTOBER - TCS 206C(1H)
TCS Under Section 206C(1H) on Sale of Goods:- ANALYSIS
Section 206C(1H)
(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 goods covered in sub-section (1) or sub-section (1F) or sub-section (1G) shall, at the time of receipt of such amount, collect from the buyer, a sum equal to 0.1 per cent of the sale consideration exceeding fifty lakh rupees as income-tax:
Provided that if the buyer has not provided the Permanent Account Number or the Aadhaar number to the seller, then the provisions of clause (ii) of sub-section (1) of section 206CC shall be read as if for the words “five per cent”, the words “one per cent” had been substituted:
Provided further that the provisions of this sub-section shall not apply, if the buyer is liable to deduct tax at source under any other provision of this Act on the goods purchased by him from the seller and has deducted such amount.
Explanation.—For the purposes of this sub-section,—
(a) “buyer” means a person who purchases any goods, but does not include,—
(A) the Central Government, a State Government, an embassy, a High Commission, legation, commission, consulate and the trade representation of a foreign State; or
(B) a local authority as defined in the Explanation to clause (20) of section 10; or
(C) a person importing goods into India or any other person as the Central Government may, by notification in the Official Gazette, specify for this purpose, subject to such conditions as may be specified therein;
(b) “seller” means a person whose total sales, gross receipts or turnover from the business carried on by him exceed ten crore rupees during the financial year immediately preceding the financial year in which the sale of goods is carried out, not being a person as the Central Government may, by notification in the Official Gazette, specify for this purpose, subject to such conditions as may be specified therein.
ANALYSIS:
1.The applicability of this provision on the assesses whose turnover in financial year 2019-20 exceeds Rs. 10 Cr.
2. Rate of TCS is .075% from 01 Oct 2020 to 31 march 2021 and .1% from 01 april 2021 onwards. If the buyer not holds valid Pan and Aadhar then 5%
3. The seller has to charge TCS in Sale bill and collect and deposit it to govt treasury, and also file TCS return. The TCS so collected has to be deposited with the government within 7th of the next month. Return of TCS is required to be filed by within 15th day of the quarter ending & in case of March, the due date is 15th May immediately after the end of the relevant FY. TCS is deposited only on payment basis not on bill basis.
4. TCS is required to be to be collected on amount received above Rs. 50 Lakh. The consideration of Rs. 50 Lakh is after including TCS & Other charges.
5. TCS collected on Bill amount plus GST amount.
