Who Will Deduct TCS?

On which amount TCS is deducted?

The tax shall be collected from the amount received as consideration for the sale of goods in excess of Rs 50 lakh in any previous year.

So if you are buying goods of more than Rs 50 lakh be ready to pay TCS on the same and claim the credit at the time of filing your income tax return..

How is TCS calculated?

Section 206C(1H) envisages that TCS at the rate of 0.10% of the sale consideration received in excess of ₹ 50 Lakhs shall be collected by the seller. As such, TCS shall be collected on Total Sale Value received less ₹ 50 lakh.

What is TCS tax rate?

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.

What is difference between TDS and TCS?

TDS is the tax which is deducted on a payment made by a company to an individual, in case the amount exceeds a certain limit. TCS is the tax which is collected by sellers while selling something to buyers. TDS deduction is applicable on payments such as salaries, rent, professional fee, brokerage, commission, etc.

Who is liable to deduct TCS?

> TCS will be applicable w.e.f.01.10. 2020, sub-section 206C(1H) imposes responsibility of collection of TCS on every person whose total sales, gross receipts or turnover during the preceding financial year 2019-20 is more than 10 Crores. Such person is liable to collect TCS @0.1% on the amount exceeding Rs.

Can TCS be claimed?

TDS can be deducted by a bank on interest income paid to you or by your tenant. TCS (tax collected at source) could have been paid by you if the motor vehicle you purchased was worth more than Rs 10 lakh. Credit of TCS during the year has to be claimed in your ITR in a manner similar to that for TDS.

How can I get TCS refund?

Any GST portal user can click on ‘TDS and TCS credit received’ tile available on return dashboard after logging in. This can help them to claim or reject the credit of TDS and TCS deducted or collected by their corresponding Government deductor or e-commerce operator.

On which item TCS is applicable?

Seller who receives any amount as consideration for sale of any goods aggregating to 5 million Indian Rupee (INR) or more in a financial year from a buyer, at the time of receipt of such amount is required to collect tax at source (TCS) at the rate 0.1 per cent on the sale consideration exceeding INR 5 million as …

What is new TCS rule?

As per the new provision if any seller of any goods whose turnover in the preceding FY exceeds Rs. 10 Crore then, from 1st of October 2020, he shall be liable to collect TCS @ 0.1% (Rate will be 0.075% till 31.03. 2021) of the sale value from the buyer if the buyer purchase goods for the value exceeding Rs.

Is TCS refundable?

In this regard, it may be noted that TCS is not an additional tax but is in the nature of advance income-tax/TDS for which the buyer would get the credit against his actual income tax liability and if the amount of TCS is more than his tax liability, the buyer would be entitled for refund of the excess amount along …

Who is TCS Treas 449?

If your client’s refund is less than expected and you see a coinciding TCS TREAS 449 offset, this means that the tax payers refund has been reduced to repay a debt collected through the Treasury Offset Program. This program is designed to collect delinquent debts that are owed to states and federal agencies.

Is TCS deducted on GST amount?

Tax Collected at Source (TCS) under GST means the tax collected by an e-commerce operator from the consideration received by it on behalf of the supplier of goods, or services who makes supplies through operator’s online platform. TCS will be charged as a percentage on the net taxable supplies.

What is TCS return?

1. Tax collected at source (TCS) Tax collected at source (TCS) is the tax payable by a seller which he collects from the buyer at the time of sale. Section 206C of the Income-tax act governs the goods on which the seller has to collect tax from the purchasers.

What is TCS in vehicle?

Tax Collection at Source (TCS) on sale of vehicles; goods or services. Before Finance Act, 2016, the earlier provision TCS was only collected on tendu leaves, scrap, jwellery, bullion, parking In recent years, the scope of TCS is being extended in an effort to curb tax evasion and black money transactions.