NOTICE REGARDING LEVY OF TCS @ 0.1% (0.075% FOR OCT 2020 TO MAR 2021 PERIOD) APPLICABLE ON SALES OF GOODS W.E.F 01 OCTOBER 2020
In terms of the provisions of Section 206C of the Income Tax Act, 1962, as amended by the Finance Act, 2020, we will be collecting TCS (Tax Collection at Source) @ 0.1% (0.075% for Oct 2020 to Mar 2021 period) of the sale consideration exceeding in aggregate Rs 50 lakhs from a single buyer w.e.f 01 October 2020 . In case of those buyers who do not furnish their PAN / AADHAR number to us, TCS shall be levied at 1%.
The Finance Act, 2020 (12 of 2020) dt. 27 March 2020
The Section 206C of the Income-tax Act with effect from the 1st day of October 2020 has been amended by insertion of following sub section:
(1H) “Every person, being a seller, who receives any amount as consideration for sale of any goods of the value or aggregate of such value exceeding fifty lakh rupees in any previous year, other than the goods being exported out of India or goods covered in sub-section (1) or sub-section (1F) or sub-section (1G) shall, at the time of receipt of such amount, collect from the buyer, a sum equal to 0.1 per cent. of the sale consideration exceeding fifty lakh rupees as income-tax.
Provided that if the buyer has not provided the Permanent Account Number or the Aadhaar number to the seller, then the provisions of clause (ii) of sub-section (1) of section 206CC shall be read as if for the words “five per cent.”, the words “one per cent.” had been substituted:
Provided further that the provisions of this sub-section shall not apply, if the buyer is liable to deduct tax at source under any other provision of this Act on the goods purchased by him from the seller and has deducted such amount.”
Explanation. For the purposes of this sub-section,
(a) “buyer” means a person who purchases any goods, but does not include,
(A) the Central Government, a State Government, an embassy, a High Commission, legation, commission, consulate and the trade representation of a foreign State; or
(B) a local authority as defined in the Explanation to clause(20)of section10;
(C) a person importing goods into India or any other person as the Central Government may, by notification in the Official Gazette, specify for this purpose, subject to such conditions as may be specified therein;
(b) “seller” means a person whose total sales, gross receipts or turnover from the business carried on by him exceed ten crore rupees during the financial year immediately preceding the financial year in which the sale of goods is carried out, not being a person as the Central Government may, by notification in the Official Gazette, specify for this purpose, subject to such conditions as may be specified therein.