TCS on sales and purchase

1

Hi,
As per new Indian law, Kindly educate us how to configure tcs on purchase and sales.

1 Like
2

You can use the “Taxes and Charges” table and book transaction accordingly.

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3

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 â‚ą 10 Crores in preceding financial year;
  • TCS to be collected if the Value/Aggregate Value received for Goods from a buyer is more than â‚ą 50 Lakhs in a financial year;
  • TCS to be collected on [ Total Sale Value received – â‚ą 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