Collected by Whom:-
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 50 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.
Rate of TCS:-
a sum equal to 0.1% of the sale consideration exceeding 50 lakh rupees.
Provided that,
if the buyer has not provided the Permanent Account Number (PAN) or the Aadhaar number to the seller, then:-
Rate of TCS:-
a sum equal to 1% of the sale consideration exceeding 50 lakh rupees.
Exceptions:-
- This Section shall not applicable if the buyer is liable to deduct tax at source (TDS) under any other provision of this Act on the goods purchased by him from the seller i.e. the seller does not need to collect TCS on sales from those specified buyers who is going to deduct TDS while making the payments to seller,
- This Section is not applicable on Sale of Following Goods
|
Section |
Transactions Covered |
Percentage |
|
206C(1) |
i. Alcoholic Liquor for human consumption ii. Tendu leaves iii. Timber obtained under a forest lease iv. Timber obtained by any mode other than under a forest lease v. Any other forest produce not being timber or tendu leaves vi. Scrap vii. Minerals, being coal or lignite or iron ore |
1% 5% 2.5% 2.5% 2.5% 1% 1% |
|
206C(1F) |
i. Sale of Motor vehicle (if value exceeds 10 Lakhs) |
1% |
|
206C(1G) |
i. Remittance out of India (if value exceeds 7 Lakhs) under LRS Scheme ii. Sale of Overseas Tour Packages by Tour Operator |
5% 5% |
Important Definitions:-
- “seller” means
a person whose total sales, gross receipts or turnover from the business carried on by him exceed 10 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.’;
- “buyer” means
a person who purchases any goods, but does not include,
- the Central Government, a State Government, an embassy, a High Commission, legation, commission, consulate and the trade representation of a foreign State; or
- a local authority; or
- 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;