Dilip Patel (Director) (71 Points)
02 October 2020We are Pvt Ltd. company and supplying material to State Electricity Board,Gujarat i.e.UGVCL,PGVCL,MGVCL,DGVCL. All these UGVCL and other are now(from 2013) incorporate in company, basically they are totally manage by State Government. Now if we get the payment after 1st October from these company, we have to deduct TCS as per income tax section of 206(1H). As per GST Rules they are deducting TDS from our payment.
Kindly reply me early.
Madhusoodanan
(DFD)
(32 Points)
Replied 12 October 2020
At present exemption is given to government, local authorities, embassies, consulates, high commission, trade representative of a foreign state etc. only. Hence, in my opinion you have to collect TCS under 206C(1H) provided you come under the definition of Seller as per that section and collection is more that Rs. 50 lakhs for the year.
CAclubindia
