TCS Provisions Effective 01st October 2020

TCS Net Gain Financial Solutions

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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.