any tcs on sale value more than 5 lacs

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palani s (Querist)
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26 August 2016 in Karnataka One of the company not accepting sale invoice value more than five lacs, otherwise tcs 1% going to collect. if it is in act please help to clarify

ACA Anurag

ACA Anurag (Expert)
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26 August 2016 Dear Palani, is its a cash transactions?? as there is no such rule exists ( Hope its not case of jewellery) Kindly like if my response has helped you

Kaushik Joshi

Kaushik Joshi (Expert)
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27 August 2016 Dear Palani S, Section 206C of the act reads as under (1D) Every person, being a seller, who receives any amount in cash as consideration for sale of bullion or jewellery 87[or any other goods (other than bullion or jewellery) or providing any service], shall, at the time of receipt of such amount in cash, collect from the buyer, a sum equal to one per cent of sale consideration as income-tax, if such consideration,— (i) for bullion, exceeds two hundred thousand rupees; or (ii) for jewellery, exceeds five hundred thousand rupees; 88[or] 88[(iii) for any goods, other than those referred to in clauses (i) and (ii), or any service, exceeds two hundred thousand rupees: Provided that no tax shall be collected atsource under this sub-section on any amount on which tax has been deducted by the payer under Chapter XVII-B.]

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Kaushik Joshi

Kaushik Joshi (Expert)
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27 August 2016 how this will clarify the issue