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Sec 86B

Purusothaman Raja (196 Points)

20 April 2021

Dear sir,
what is sec 86B ...
we have a credit Itc on IGST..
shall I need pay 1% tax?

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6 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 20 April 2021

Section 86B is

Notwithstanding anything contained in these rules,

the registered person shall not use the amount available in electronic credit ledger to discharge his liability towards output tax in excess of 99% of such tax liability, in cases where the value of taxable supply in a month exceeds 50 Lakhs other than exempt supply and zero-rated supply.

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Purusothaman Raja (196 Points)
Replied 20 April 2021

We paid tds 1lack above monthly , then this rule apllicable us

CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 20 April 2021

It might not applicable

CA Puja Sharma (Chartered Accountant) (5010 Points)
Replied 20 April 2021

Whether your income tax liability for the previous FYs was more than Rs. 1 Lacs which you have paid via taxes or tds then you are not required to pay 1% liability through cash.