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Tcs on used car sold to auto consultant / broker

Madhavi (Practice) (80 Points)

12 December 2018

Hello Everyone..Is TCS on amount payable to broker on sell of used car above Rs 10 lakhs , applicable or not ? The broker is denying to pay additional amount of 1%. Please guide. Thanks in advance.

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5 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178226 Points)
Replied 13 December 2018

“ 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.: – Sub Sec. 1F.

Yes, you are liable to collect & pay 1% TCS for even old vehicle, exceeding 10L.

Note:: The definition of “Seller” as given in clause (c) of the Explanation below sub-section (11) of section 206C shall be applicable in the case of sale of motor vehicles also Accordingly, an individual who is liable to audit as per the provisions of section 44AB of the Act during the financial year immediately preceding the financial year in which the motor vehicle is sold shall be liable for collection of tax at source on sale of motor vehicle by him.

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Madhavi (Practice) (80 Points)
Replied 14 December 2018

thanks Sir.. The Broker is denying to pay TCS

Vaibhav Bagdi (student) (29 Points)
Replied 29 December 2020

Does a company giving a car on exchange to the distributor having exchange value of more than 10 lacs required to collect TCS on the car exchanged even if no consideration has been received, infact the amount deducted from the ex-showroom price of new car purchased.

Vaibhav Bagdi (student) (29 Points)
Replied 29 December 2020

DHRUV (student) (123 Points)
Replied 17 May 2023

what are the consequences if TCS not collected on sale of car.

How to comply with the provisions since "assessee not in default" relief is not available for this section and the buyer is not ready to give TCS amount to seller so that the seller can deposit.