Whether TCS is deductable on sale of vehicle from Dealer to Dealer ?
RAMANDEEP SINGH (M.Com) (25 Points)
24 May 2022Whether TCS is deductable on sale of vehicle from Dealer to Dealer ?
Kev Men
(788 Points)
Replied 24 May 2022
The CBDT had issued a Circular no. 22/2016 relating to the TCS u/s 206C. As per FAQ of the circular, in Q No.1, it is said that the TCS on the sale of motor vehicle is brought to cover all transactions of 'RETAIL SALES' and accordingly won't apply on sale of motor vehicles by manufacturers to dealers/distributors.
In my humble opinion, the transaction of sale of vehicle from dealer to dealer will not be within the ambit of TCS. This is also with a view that ' the purchasing dealer' will already be registered under Income Tax Act and the basic intention of introducing the TCS on sale of motor vehicle is to track/notify the high value transaction.
Eswar Reddy S
(CFO- at NHTF)
(58263 Points)
Replied 24 May 2022
debora M
(BUSINESS DEVELOPMENT MANAGER)
(1697 Points)
Replied 24 May 2022
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. TCS deduction is applicable on sales of goods like timber, scrap, mineral wood, and so on.
Eswar Reddy S
(CFO- at NHTF)
(58263 Points)
Replied 25 May 2022
Ravita Jain
(78 Points)
Replied 25 May 2022
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)