​

​

Click to watch

​

Seller of Goods is required to collect TCS @ 0.1% of sale consideration in excess of 50 lakhs in the Previous Year. Individual payment or aggregate payment in excess of 50 lakhs, are both covered under this section.

​

"Seller" means a person whose total sales, gross receipts or turnover exceed 10 crore rupees during immediately preceding the financial year

​

The section is not applicable for Export of Goods.

​

TCS at Higher Rate: The buyer has to provide PAN to the seller. If PAN is not provided then TCS shall be collected at the rate of 1%.

​

194Q prevails over 206C(1H)

The section shall not apply, if the buyer is liable to deduct tax at source under section 194Q on the goods purchased by him from the seller and has deducted such amount.

​

Credit of Such tax shall be available to the Buyer.

​

Any person responsible for collecting the tax who fails to collect the tax in accordance with the provisions of this section, shall, notwithstanding such failure, be liable to pay the tax to the credit of the Central Government.

​

Consequences of Non-Compliance: TCS is not collected or after collecting, is not paid to the department:

​

• Assessee in Default: The person shall be deemed to be an assessee in default in respect of the tax.

• Interest:  Person shall be liable to pay simple interest at the 1% per month or part thereof on the amount of such tax from the date on which such tax was collectible to the date on which the tax was actually paid and such interest shall be paid before furnishing the quarterly statement for each quarter.

• Charge on Assets: The amount of the tax together with the amount of simple interest thereon shall be a charge upon all the assets of the person responsible for collecting tax.

​

Goods and Service Tax: As per author's view, GST amount shall be excluded while checking the turnover of 10 crore in  the preceding financial year. However, GST amount shall be taken into account while considering the limit of 50 lakhs.