Section 206C(1H) - TCS Compliane - Financial Year 2023-24 and 2024-25
NOTES: I Applicability
of Section, Rates, etc 1. Every
Seller who receives any amount (inclusive of GST) as consideration for sale of
goods (Other than Exports) of value or aggregating Rs 50,00,000 in any
Financial Year, then at the time of receipt of such amount, has to collect Tax
(TCS) from buyer @0.1% on amount exceeding Rs 50,00,000/-. However, Provisions of this section shall not
be applicable if buyer is liable to deduct TDS U/s 194Q (Refer our Circular on
TDS Compliances) 2. Seller here is a person whose Gross turnover
or Gross receipts exceeds Rs 10.00 Cr in the Previous Year immediately
preceeding to the Year in which goods are sold.
It is not clarified that whether Turnover /Gross Receipts is inclusive
or exclusive of GST. Since no
clarification is given, it is suggested to apply the provisions, include GST as
part of Receipts/Turnover. 3.Buyer, may apply for Relief of lower deduction
or no deduction in Form No. 13 U/s 206CC (4) of Act. 4. As per Provisions of Sec 206CCA, if Buyer has
not filed Return of Income for the last two Previous Years immediately prior to
the Financial Year for which tax is required to be collected, then tax has to be
deducted at 5%. These provisions will
apply only when aggregate of TDS &
TCS exceeds Rs 50,000 in each of the said two Previous Years. 5. If PAN is
not furnished by Buyer, then Tax must be collected at 5% U/s 206CC. II Timing of Collection Tax is to be collected at the time of Receipt or
Debit to the Customer Account in the Books whichever is earlier. III Due date for Depositing Tax Collected
at Source: Tax so collected from
Customer has to be deposited before 7th of from the last date of the
month in which such collection is made. In other words, TCS collected during a
month has to be deposited by 7th of subsequent month for all months
including March 2024/2025 IV Filing of Quarterly Statements: Quarterly Statement in Form 27EQ should be filed
for every Quarter. Due dates for filing Quarterly Statements are:
If the Person fails file the Statements within
Due Dates as mentioned above, Late Fees is payable at Rs 200/- per day for
every day during which such default continues subject to TCS collected. V Payment
of Interest: If person responsible for collecting tax fails to
collect tax or after collecting fails to pay/deposit the tax, then he shall be
liable to pay simple interest @1% on the amount of such tax from the date on which
such tax was collectable to the date on which such tax was actually paid. [Section 206C (7)]. |
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