TCS to Be Collected by Seller from October 1 Only if Turnover Exceeds Rs 10 Crore: CBDT

The CBDT on Wednesday said a seller would be required to collect tax collected at source (TCS) from October 1 only if his turnover exceeds Rs 10 crore in the last financial year. The Finance Act, 2020 has amended the provisions relating to TCS with effect from October 1, 2020 to provide that a seller of goods shall collect tax at the rate of 0.1 per cent (0.075 per cent up to March 31, 2021) if the receipt of sale consideration from a buyer exceeds Rs 50 lakh in the financial year.

“… this TCS shall be applicable only on the amount received on or after 1st October, 2020,” the CBDT said. In a statement, the Central Board of Direct Taxes (CBDT) clarified that TCS shall be applicable only on the amount received on or after October 1, 2020 and a seller would be required to collect TCS only if his turnover exceeds Rs10 crore in the last financial year.

Moreover, the export of goods has been exempted from the applicability of the provisions of TCS, it added. The CBDT said there are only around 3.5 lakh persons who have disclosed business turnover of more than Rs 10 crore in FY 2018-19 whereas active deductors / collectors as on date stand at more than 18 lakh.

Therefore, the collection under these new provisions would be required to be made by very few persons who in most of the cases would already be complying with the existing provisions of tax deducted at source (TDS)/TCS. The CBDT said due to the high threshold for collector and exceptionally low rate of TCS, this TCS would neither result in new compliance burden on the collector nor cause any difficulty for the collector.

Speak Your Mind

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Get in Touch

350FansLike
100FollowersFollow
281FollowersFollow
150FollowersFollow

Recommend for You

Oh hi there 👋
It’s nice to meet you.

Subscribe and receive our weekly newsletter packed with awesome articles that really matters to you!

We don’t spam! Read our privacy policy for more info.

You might also like

Climate Change And Cycle Lanes Propel Greens Into Municipal...

Paris mayor Anne Hidalgo in downtown Paris, on June...

SBI OTP-based ATM cash withdrawal facility rules changing from...

New Delhi: India's biggest lender State Bank of India (SBI) has announced extension of...

Jaguars’ Jawaan Taylor Prepares For Virtual Offseason And Offers...

JACKSONVILLE, FLORIDA - SEPTEMBER 19: Jawaan Taylor #75 of...

11 Words and Phrases to Take Out of Your...

170 seconds. Weeks or even months of working on your pitch deck could come...