01 October 2020
whether TCS u/s 206(1C) will be Levied on Basic value plus GST amount or only on the basic amount ??? any clarification regarding that issue???
01 October 2020
TCS u/s 206(1C) will be Levied on Basic value plus GST amount.
FAQ 17. Whether TCS is to be collected on the total invoice value including the GST? Section 206C(1H) provides that TCS shall be collected on the consideration for "sale of any goods". Thus, in common parlance, the price bargained for the goods could be regarded as consideration of goods. The question arises whether the GST shall form part of the consideration or not. The CBDT vide Circular No. 17, dated 29-09-2020, has clarified that since the collection is made with reference to receipt of the amount of sale consideration, no adjustment on account of indirect taxes including GST is required to be made for the collection of tax under this provision. Thus, TCS is required to be collected on the sale consideration inclusive of GST.
CAclubindia
