As per new Indian law, Kindly educate us how to configure tcs on purchase and sales.
Hi thank you for the support. For 01.10.2020 onward govt of india had changed sales of good for more than 50 Laks. Please study the below rule.
The provisions of sub-section (1H) of section 206C has been made effective from 1st October 2020 and state that:
- A Seller of Goods is liable to collect TCS from Buyer on Sale of any goods;
- Turnover of seller is more than ₹ 10 Crores in preceding financial year;
- TCS to be collected if the Value/Aggregate Value received for Goods from a buyer is more than ₹ 50 Lakhs in a financial year;
- TCS to be collected on [ Total Sale Value received – ₹ 50 Lakhs];
- Rate of TCS is 0. 1% , if PAN of buyer is available [ 1% if PAN not Available ].
Considering the doubts being raised by trade & industry in relation to interpretation and compliance of the newly introduced provisions, Central Board of Direct Taxes [CBDT] has come up with a slew of clarifications by way of Circular 17/2020 dated 29th September 2020 and press release dated 30th September 2020.
In this document, we have compiled a list of compliances and obligations on the part of seller as well as a detailed checklist of actions that needs to be performed by the seller before the provisions are made effective