From 1 October 20 New section 206C(1H) is applicable which is TCS on sale of goods but there are lots of confusion about its calculation, Who is liable to collect TCS on sale, When to collect TCS on Sale, is GST to include while collecting TCS and many more
TCS on sale of Goods u/s 206C(1H),
TCS on sale of Goods,
Who, When and How TCS is computed and collected,
How to calculate TCS on sale,
Who is liable to collect TCS,
TCS on sale,
why tcs deducted on sale,
why tax on sale deducted,
taxonsale,
new tax on sale,
New Tax on sale,
Is TCS applicable on export,
Ca ved taya,
#cavedtaya,
TCS,
New section of TCS,
Section 206 C (1H),
TCS,
Applicability of section 206C(1H)
TCS shall be collected by the seller from buyer if the below conditions are satisfied
There is a sale of goods
If seller Total Sale, Gross Receipts or Turnover from the business carried on by him exceeds Rs 10 Crore in the preceding financial year and (Like- For Current FY 2022-23 immediate preceding FY is 2021-22)
if the amount received for total sales to a single buyer in the current financial year exceeds INR 50 lakhs (Like- Current FY 2022-23)
Important Points
TCS on the sale of goods under the Income Tax Act w.e.f 1st October 2020
The TCS on sale of goods is to be calculated on the amount above INR 50 Lakhs
TCS should be collected by Seller from the buyer on receipt basis not on the invoice date (It includes Advance payment also)
Note- Sale Consideration means Invoice Amount (Basic + GST)
- No adjustment on account of Sale Return, Discount on indirect tax including GST is required to be made for collection of tax
TCS Rates on Sale of Goods u/s 206C(1H)
0.1% or 1%
This Section is not applicable in these cases
i) In case of Import or Export
ii) If the buyer is Central Government, the State Government, Embassy, High Commission, and so on of a foreign state
iii) The Local Authority
iv) Any person as per notification of the Central Government shall not be included
v) If the TDS is deducted by the buyer under various sections like 194Q
vi) Supply of goods like Timber, Tendu leaves, forest products, scrap , minerals i.e. Iron ore etc., because such goods are already covered under Section206 (1), Section206(1C), Section 206(1F) and Section 206 (1G)
vii) On branch transfer of goods between Head office and Branch
Other Provisions
Monthly deposit of TCS by 7th of the following month
Filing of quarterly return – Form 27EQ within 15 days from the end of Qtr
Form 27D is the certificate issued for filing of TCS return
If the seller fails to file the TCS returns or does not file within due date, seller is liable to pay penalty minimum of Rs 10,000/- and maximum of Rs1,00,000/- as per Sec 271H of I.T Act,1961
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