Jagadishwaran Guruswamy (Managing Director) (67 Points)
08 February 2017Good Evening Members, My company, a private limited company wants to buy a car costing more than Rs.13.88 Lakhs ex showroom. This price does not include insurance road tax etc.
The GO talks about TCs being applicable when paid in cash so is TCS applicable on payment by cheque also?
Also if this is to be paid by the buyer ( us) can is there a way to claim it back?
Can you please clarify.
Thank you for your time.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(183241 Points)
Replied 08 February 2017
As per CBDT vide Circular No. 22/2016 [F.No 370142/17/2016-TPL] dated June 08, 2016, TCS on sell of car above 10 lakhs is chargeable at 1%, it does not depend on mode of payment, applicable even with cheque payment.
Seller will collect 1% TCS from purchaser and pay to treasury.
Purchaser can claim it against its tax liability and any excess amount can be demanded by filling ITR.
Jagadishwaran Guruswamy
(Managing Director)
(67 Points)
Replied 09 February 2017
Dear Sir,
I thank you very much for the response. I deeply appreciate your help.
warm regards,
Jagadish
CAclubindia
