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Tcs

Rajkumar Gutti (Audit Manager) (314 Points)

24 June 2016

from 01.06.16 TCS will apply for all cash sales exceeding Rs.2 Lakh. In this regard sir let me know whether this amendment is applicable to only single invoice or else. Pl guide in this regard

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7 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178281 Points)
Replied 10 July 2016

Its per transection

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Vishal Goel (Chartered Accountant) (1688 Points)
Replied 11 July 2016

Yes, The limit is on cash receipts per transaction and for detail refer CBDT circular 23/2016 dated 24/06/2016

Dipjyoti Majumdar (CA in service & CS. dipmaj@ rediffmail.com ) (3468 Points)
Replied 11 July 2016

Friends

I have 2 questions on this topic --

1) Is the collector required to obtain a tax collection account number where it is having a TAN for tax deduction account number

2) Is there any notification for exempting certain class of buyers on date ie 11/07/16 as the section provides so.

Regards,

Dipjyoti

Dipjyoti Majumdar (CA in service & CS. dipmaj@ rediffmail.com ) (3468 Points)
Replied 11 July 2016

Friends

I have 2 questions on this topic --

1) Is the collector required to obtain a tax collection account number where it is having a TAN for tax deduction account number

2) Is there any notification for exempting certain class of buyers on date ie 11/07/16 as the section provides so.

Regards,

Dipjyoti

Vishal Goel (Chartered Accountant) (1688 Points)
Replied 12 July 2016

Tax Deduction at Source (TDS) and Tax Collection at Source (TCS) can be done through the same TAN. You do not need different TANs for different types of transactions

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Vishal Goel (Chartered Accountant) (1688 Points)
Replied 12 July 2016

FAQs - Tax Deduction and Collection Account Number (TAN)

Q) Is a separate TAN required to be obtained for the purpose of Tax collection at Source?

Ans. In case a TAN has already been allotted, no separate application needs to be made for obtaining TAN. The same number can be quoted in all returns, challans and certificates for TCS. However, if no TAN has been allotted, a duly filled in Form 49B, alongwith the application fees is to be submitted at any TIN-FC.

Vishal Goel (Chartered Accountant) (1688 Points)
Replied 12 July 2016

Nil rate /Exemption: Section 206C (1A)/ (1B)

Notwithstanding anything contained in sub section (1) of section 206C, No tax shall be deducted from a buyer(resident in India) who purchases specified goods not for the purpose of trading but for the manufacturing, processing, or production of goods/article or thing and gives a declaration in duplicate in Form 27C to the seller. The seller shall deliver one copy, form 27C collected from buyer, to Chief Commissioner/ Commissioner of Income tax