06/09/2020
The Government of India has introduced a new *Section 206C(1H) of the Income Tax Act, 1961* with regards to “Tax Collection at Source”.
Applicable to all sellers of goods whose turnover for the preceeding Financial Years exceeds Rs. 10 Crores rupees.
*Example:-*
If during FY 2019-20, turnover was exceeded ₹10 Crores , then For FY 2020-21 w.e.f 01.10.2020, this provision will applicable to such sellers.
*Applicable from 01.10.2020*
1. Every seller who has received any amount as sale consideration above Rs. 50 lakhs has to collect additional 0.075% of bill amount, collect PAN and pay as TCS every month.
2. TCS returns have to be filed as like TDS returns are filed.
3. So everyone is advised to complete accounting for half year till 30.09.2020 and separate parties with whom sale of Rs. 50 lakhs is made.
4. From every sale after 01.10.2020 to such parties levy 0.075% TCS in every bill and keep record of the same
Accordingly sellers will need to add 0.075% to the bill value and deposit with the government on receipt of the payment from buyers.
