TCS on Sale of Goods-Section 206C(1H)

Section 206C(1H) of the Income Tax Act, 1961:- TCS on Sale of Goods

  • TCS should be collected on Sale of goods of value exceeding 50 lacs from a customer during the year
  • TCS rate : 0.1%
  • If buyer does not give PAN or aadhar, TCS rate is 1 %
  • Buyer – Buyer does not include Government, local Authorities and importer of goods
  • TCS to be collected at the time of receipt of amount from the buyer for Sale of goods
  • Applicability- It is applicable to Assessees whose turnover during the preceding year exceeds 10 Crs
  • The TCS is to be collected on the Sales in excess of Rs. 50 lacs @ 0.1%
  • For example: if A sales goods worth 52 lacs to B in a year , TCS will be collected by A on 2 lacs only
  • Exceptions : The section does not apply to Export of goods Sale of Tours, motor vehicles or goods covered u/s 206C(1)
  • If buyer is liable to deduct TDS on purchases , then on such transactions the seller need not collect TCS
  • Hence if 194Q is applicable, 206C(1H) is not applicable to seller.