sunil maheshwari (Student CA Final ) (61 Points)
18 June 2018
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(178001 Points)
Replied 18 June 2018
At the time of preparation of Invoice or delivery challan...... whichever earlier.....
Need not deduct TCS at advance received.
Siddharth Goel
(Chartered Accountant)
(3031 Points)
Replied 18 June 2018
Hi,
Yes, on first receipt itself the TCS to be collected, which means TCS is to be collected with booking amount itself.
But practically, it’s not possible to collect TCS on full amount of Sales consideration, at the time of booking motor vehicle of value exceeding Rs. 10,00,000, with booking amount itself; therefore considering practical life, amount on which 1% to be charged for collection of TCS is Booking Amount.
Further, on every second receipt of sales consideration full amount of Tax can be collected at source less already received at the time of booking a motor vehicle.
Siddharth Goel
(Chartered Accountant)
(3031 Points)
Replied 18 June 2018
I would further like to clarify, that the law states that:
Every person, being a seller, who receives any amount as consideration for sale of a motor vehicle of the value exceeding ten lakh rupees, shall at the time of receipt of such amount, collect from the buyer, a sum equal to one percent of the sale consideration as income tax.
The law clearly states that TCS is to be deducted at the time of receipt of such amount, where such amount is not defined clearly in the law.
Hence, on the basis of this the above inference is drawn.
sunil maheshwari
(Student CA Final )
(61 Points)
Replied 18 June 2018
Siddharth Goel
(Chartered Accountant)
(3031 Points)
Replied 18 June 2018
Yes. That is correct because TCS is to be deducted at the time of receipt of amount.
sunil maheshwari
(Student CA Final )
(61 Points)
Replied 18 June 2018
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