TCS New Provision | 01.10.2020
- Devang Doshi
- Oct 1, 2020
- 1 min read
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.
A seller would be required to collect tax only if his turnover exceeds Rs. 10 crore in the last financial year. (FY. 2019-2020)
TCS shall be applicable only on the receipt exceeding Rs. 50 lakh by a seller from a particular buyer.
Export of goods has been exempted
Applicable only for sale of Goods
Not applicable for sale of Services
TCS has not been made applicable to the amount received before 1st October, 2020
Example - A seller who has received Rs. 1 crore before 1st October, 2020 from a particular buyer and receives Rs. 5 lakh after 1st October, 2020 would be required to collect tax on Rs. 5 lakh only and not on Rs. 55 lakh [i.e Rs.1.05 crore - Rs. 50 lakh (threshold)]
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