Honourable Finance Minister during Budget for FY 2020-21 had proposed the introduction of TCS on Sale of Goods to track huge transactions in order to counter tax evasion.
The said provisions u/s 206C(1H) and 206C(1G)(b) is notified and set to be effective from the 1st of October 2020.
- TCS on Sale of Goods :
a) On Receipt of consideration more than 50 Lacs from a Buyer in a single Financial Year.
b) TCS to be collected at 0.1%, cases where PAN is not available 1%.
c) Provisions applicable if the seller has crossed the threshold turnover of more than 10 crores in the Previous Financial Year .
- TCS on Sale of Overseas Tour Package :
a) Applicable to trader dealing with overseas travel packages.
b) No monetary threshold for collection of TCS.
c) TCS to be collected at 5%, cases where PAN is not available 10%
Please refer to the attached pdf file for further details.