TCS PROVSIONS APPLICABLE FROM 1ST OCTOBER 2020

Section 206C (1G)

WHO ARE LIABLE TO COLLECT TCS

1. Being an Authorized Dealer, who receives an amount, for remittance out of India from a buyer, being a person remitting such amount out of India under the Liberalized Remittance Scheme of the Reserve Bank of India
2. being a seller of an overseas tour programme package, who receives any amount from a buyer, being the person who purchases such package,

 

WHEN TO COLLECT TCS

• at the time of debiting the amount payable by the buyer or at the time of receipt of such amount from the said buyer, by any mode, whichever is earlier.

 

TCS RATES

• 5% of the amount or aggregate of the amounts in excess of seven lakh rupees remitted by the buyer in a financial year, where the amount being remitted is for a purpose other than purchase of overseas tour programme package:
• 1.5% of the amount or aggregate of the amounts in excess of seven lakh rupees remitted by the buyer in a financial year, if the amount being remitted out is a loan obtained from any financial institution as defined in section 80E, for the purpose of pursuing any education:
• 5% of the amount receives for purchase of an overseas tour programme package.

 

NON-APPLICABILITY:-

• If buyer is liable to deduct tax at source under any other provision of this Act and has deducted such amount;
• the Central Government, a State Government, an embassy, a High Commission, a legation, a commission, a consulate, the trade representation of a foreign State, a local authority as defined in the Explanation to clause (20) of section 10 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.

 

 

Section 206C (1H)

WHO ARE LIABLE TO COLLECT TCS

• 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.
• 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,

 

WHEN TO COLLECT TCS

• at the time of receipt of such amount,

 

TCS RATE

• 0.1%* of the sale consideration exceeding fifty lakh rupees.
• 1 % if the buyer has not provided the Permanent Account Number or the Aadhaar number to the seller.

 

Note: – * The rate of TCS has been reduced to .075% for financial year 2020-21.

NON APPLICABILITY

• 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.
• If Buyer: –
  • the Central Government, a State Government, an embassy, a High Commission, legation, commission, consulate and the trade representation of a foreign State
  • a local authority as defined in the Explanation to clause (20) of section 10;
  • 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;

 

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