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Tcs from 1 june 2016

Tax queries 271 views 1 replies

POOJA S. GUPTA

Consultant

33 Points Joined November 2009

Hi,

I have a query regarding TCS which is applicable from 1 June 2016.(TCS @ 1% if bill value is more than INR 2 lakhs and part/ full payment is in cash)

I have following scenarios where I need to understand the applicability

1. Bill amount INR 2.5 lakhs (Billed in May 2016) and Part payment of INR 1 lakh was made. INR 1.5 lakhs paid in June 2016. Is TCS applicable? At what amount?

2. Bill amount INR 2.5 lakhs (Billed in June 2016) and part payment of INR 1 lakh was made. INR 1.5 lakhs pending (Assuming it will be paid in July 2016). When TCS needs to be collected and at what amount? In June- 1% of 1 lakh and in July- 1% of 1.5 lakhs or In June- 1% of 2.5 lakhs or In July 1% of 2.5 lakhs.

Please help.

Thanks & Regards,

Pooja

Replies (1)

Harshit Kabra (INVESTOR)

Student CA final

1113 Points Joined June 2016

hiee, pooja ji
see, tcs is applicable even if small portion of payment is made in cash if bill amounts exceeds 2lakh.
in ur first case no TCS will be applicable, since billed in may, and further payment msde in june is less than 2lac.
for ur 2nd case the whole amount of tcs shall be recovered by seller at whole billed value and collected at the time of payment made.

hope so all of ur doubts are cleared now.
for further query u may feel free to contact +918955737073