29 June 2016
Are TCS provisions applicable for intermediaries? Going with the clarification issued by CBDT dated 8th June,2016 - TCS is applicable only for retail sales; Does it mean transactions between Dealer to Dealer or Dealer to Intermediary or Intermediary to Dealer is exempt? Please clarify.
Snapshot of relevant clarification:::::: "Question I: Whether tax collection at source ('TCS') at the rate of 1 % is on sale of Motor Vehicle at retail level or also on sale of motor vehicles by manufacturers to dealers/distributors, AnswEr: To bring high value transactions within the tax net, section 206C of the Act has been amended to provide that the seller shall coll ect the tax at the rate of one per cent from the purchaser on sale of motor vehicle of the value exceeding ten lakh rupees, This is .. brought to cover all transactions of retail sales and accordingly it will not apply on sale of motor vehicles by manufacturers to dealers/distributors, "
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